Question

You are considering a 5/1 ARM. What does the 1 represent?

A. The total number of years of the loan

B. The number of years that a fixed interest rate will be applied to the loan

C. The number of years between adjustments in the interest rate

D. The interest rate of the initial fixed-rate loan period

Answer 1

the answer is c

the 1 stands for how often the rate adjusts, which is every year.