5/1 jumbo ARM
5/1 jumbo ARM
A 5/1 jumbo ARM (adjustable-rate mortgage) has an initial interest rate that remains in effect for five years, after which time the rate is adjusted once annually. The mortgage loan amount exceeds the maximum loan size that government-chartered agencies Fannie Mae and Freddie Mac can purchase or guarantee. Because Fannie Mae and Freddie Mac don't support jumbo mortgages, these loans usually carry higher interest rates.
6.05
