ADJUSTABLE RATES:

5/1-Year Adjustable Mortgage
This loan is very similar to the 3/1 adjustable. This is also a 30-year loan where the interest rate is fixed for the first 5 years and then changes to adjustable for the last 25 years of the loan. This offers a lower interest rate than a regular 30 or 15-years fixed loan, however, not as low as a 3/1 or a 1/1-year adjustable. You should only consider this loan if you know you will stay or refinancing within 5 years, otherwise, it is not advisable because of the risk in high adjustable interest rate.