fromRedfin | Real Estate Tips for Home Buying, Selling & More
2 days agoWhat Is a 7/6 ARM? How This Adjustable-Rate Mortgage Works and When to Consider One
The term "7/6 ARM" breaks down like this: "7" = The number of years the interest rate stays fixed at the beginning of the loan. "6" = How often the rate can adjust after the fixed period - in this case, every 6 months.. This structure is part of a newer generation of ARMs that adjust twice a year after the initial fixed term. For example, a 7/1 ARM (common in the past) adjusted once per year, but most modern ARMs now use a 7/6 format.
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