2007-11-08 03:48:50 · 4 answers · asked by Sharon D 1 in Business & Finance ➔ Renting & Real Estate
The rate is fixed for a period of 5 years and then converts to an adjustable rate mortgage for the next 25 years.
2007-11-08 03:59:35 · answer #1 · answered by don_sv_az 7 · 2⤊ 0⤋
It's fixed for the first 5 years, then becomes an adjustable rate mortgage, usually either at 1 year or 6 month intervals for the remainder of the 25 years.
2007-11-09 10:02:29 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The rate is fixed for the first 5 years, it okay for a short term loan. If you can get a fixed rate it may be better in today's market.
2007-11-08 12:51:51 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It's a BAD idea. The rate jumps up after 5 years, it can nearly double. It's a good way to lose your home. Stick with a fixed rate.
2007-11-08 12:06:11 · answer #4 · answered by Roland'sMommy 6 · 0⤊ 1⤋