#adjustable-rate-mortgage

#adjustable-rate-mortgage

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.

An adjustable-rate mortgage (ARM) is a type of home loan where the interest rate can change over time, starting with a lower introductory rate.