What is a 10/6 arm & 10/1 arm?

10/6 and 10/1 ARMs: 10/6 and 10/1 ARMs have a fixed intro rate for the first 10 years of the mortgage, then move to an adjustable rate for the remaining 20 years. 10/6 ARMs adjust every six months, and 10/1 ARMs adjust yearly.

Is a 10/6 arm right for You?

Often, he says, people will find that the 10/6 ARM is “the best of both worlds,” giving them a lower interest rate than fixed rate loans such as a 30-year fixed but with more stability than a 5/6 ARM. Safis also recommends that people ask a few questions to help them decide if a 10/6 ARM is right for them.

How long does a 10/6 arm last?

For the first 10 years, the interest rate on a 10/6 or 10/1 ARM stays the same every month, just like a fixed-rate mortgage. But after that decade ends, it becomes a variable rate, and continues to be so until the end of the mortgage term. With a 10/1 ARM, the interest rate adjusts every year.