5 year arm rates Meaning and Definition

Pronunciation

Part of Speech

Noun

Definition

1) A type of adjustable-rate mortgage, specifically one with a fixed interest rate for 5 years before adjusting periodically. 2) A financial product offered by banks and lenders that allows borrowers to adjust their loan’s interest rate every 5 years.

Examples

• Borrowers may choose a 5 year arm rates mortgage to take advantage of lower interest rates.
• Financial institutions often offer 5 year arm rates as an alternative to fixed-rate mortgages.

Synonyms

• Adjustable-rate mortgage
• Variable-rate mortgage

Etymology

The term “5 year arm rates” originated in the financial industry, likely as a combination of “adjustable-rate mortgage” and the specific term “5 year.”

Usage Notes

In most contexts, 5 year arm rates refer to a specific type of mortgage or financial product. However, the term may also be used more broadly to describe any adjustable-rate loan with a 5-year term.

Cultural References

5 year arm rates have appeared in various financial publications and news outlets, often compared to other types of mortgages or loan products.

Idiomatic Expressions or Phrases

None notable

Related Words or Phrases

• Fixed-rate mortgage
• Variable-rate mortgage

Collocations

• 5 year arm rates and mortgage
• 5 year arm rates and financial institutions

Frequency of Use

5 year arm rates are commonly used in financial contexts, particularly in discussions about mortgage options and loan products.