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What does the numbers such as 3/1 in Adjustable Rate Mortgages mean?

April 26, 2017Adjustable mean mortgages Numbers rate

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What does the numbers such as 3/1 in Adjustable Rate Mortgages mean?

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The first number (3) represents the number of years your initial rate is locked for. The second number (1) is how often (in years) the rate can adjust after the initial lock period. In this case your initial rate would be locked for 3 years but can adjust once a year after that time.