The National Directory of Certified Public Accountants

Ask A CPA - Mortgages & Loans

What Is A Five Year Adjustable, With A 30 Year Term Mortgage ?

The loan's rate is fixed for the first five years. After that, it becomes an adjustable rate mortgage, with a 30 year term. Other variations include fixed periods of seven or 10 years before adjusting annually. Generally, this is attractive for borrowers who expect to be in the house for a short period of time.

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