6 Month, 1 Year, 3/1, 5/1, 7/1, and 10/1 ARMS

There are many ARM programs available today. A 6 month ARM for example means that the term of the loan, which is 30 years, will have an adjusting interest rate every six months.

ARMS are fixed rate mortgages for a specified period of time: 6 month, 1 Year, 3, 5, 7 and 10 years respectively. Typically the borrower pays a lower interest rate, which will then adjust for the remaining term of the loan as disclosed in the ARM. The borrower will then have the option of refinancing or continuing to pay the adjusted interest rate.