You are considering a 7/1 arm. What does the 1 represent?

Question

Mathematics

Mauricio Alexander

5 January, 11:10

You are considering a 7/1 arm. What does the 1 represent?

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Answers (2)

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Lincoln Norton · Answer 1

1 represents the number of years between adjustments in the interest rate

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Carlie Hardin · Answer 2

A 7 year ARM is a loan with a fixed rate for the first seven years, and an adjustable rate every year thereafter. Because the interest rate can change after the first seven years, the monthly payment may also change.