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Richard Pelleriti wrote:

what is 5/1 arm

Answer
While the vast majority of borrowers are taking advantage of the security of a 30 year fixed, 5/1 ARMS are now in the 2.75% range, so they can be an attractive option under the right circumstances.The rate is fixed for 5 years, and then it adjusts every year after that.If it were to adjust today, it would adjust to the "Index" + "Margin."The Index is the 1 year LIBOR (.77%), and the margin is 2.25%, so the total would be 3.02%.
October 27 2010
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