5-6 Hybrid Adjustable-Rate Mortgage - 5-6 Hybrid ARM

Categories: Finance,

An adjustable-rate mortgage with an initial five year fixed interest rate after which the interest rate begins to adjust every six months according to an index plus a margin (or, the fully indexed interest rate). The index is variable while the margin is fixed for the life of the loan. 5-6 ARMs are usually tied to the six-month london interbank offered rate (LIBOR) index. .