How does adjustable rate mortgage work?
The adjustable rate loans offered by Apple FCU are 1/1, 3/1, 5/1, and 7/1 ARMs. The first number tells how long the loan will remain at the initial interest rate before the loan adjusts. For instance, the 1/1 ARM will not change for the first year but will change every year after that first year. The 5/1 ARM will not change in the first 5 years but will then change every year after the first 5 years.
