ARM Loans
The initial fixed-rate period can be as short as a month and as long as 10 years. One-year ARMs, which have their first adjustment after one year, used to be the most popular and were the bench mark. Recently the standard has become the 5/1 ARM, which has an initial fixed-rate period that lasts five years; the rate is adjusted annually thereafter. That type of mortgage, which mixes a lengthy fixed period with an even lengthier adjustable period, is known as a hybrid. Other popular hybrid ARMs are the 3/1, the 7/1 and the 10/1.