Lending Flashcards
1
Q
ARM Loan
A
“Adjustable Rate Mortgage” This type of mortgage begins with a fixed interest rate and then adjusts after a specified time. EX: A 5/1 ARM has a fixed interest rate for 5 years and may then adjust its interest rate every year after that
2
Q
Fixed Rate Mortgage
A
A mortgage that has a fixed interest rate for its entire duration. The most common term lengths are 15 years and 30 years.
