Investments glossary

5-6 Hybrid Adjustable-Rate Mortgage (5-6 Hybrid ARM)

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5-6 Hybrid Adjustable-Rate Mortgage (5-6 Hybrid ARM) is an adjustable-rate mortgage with an initial five-year fixed interest rate after which the interest rate begins to adjust every six months according to an index plus a margin, known as the fully indexed interest rate. The index is variable, while the margin is fixed for the life of the loan.

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