5/1 Hybrid Adjustable-Rate Mortgage (5/1 Hybrid ARM)
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A 5/1 Hybrid Adjustable-Rate Mortgage (ARM) combines a fixed interest rate for the first five years with a variable rate that adjusts annually thereafter. This mortgage option offers initial stability followed by potential rate fluctuations, making it suitable for borrowers who plan to sell or refinance before the adjustable period or can manage future payment changes.
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