Definition: Mortgage 5-year ARM stands for a mortgage with an interest rate that varies every five years. The term "mortgage" typically refers to a loan made by a financial institution such as a bank or government agency. The loan can be secured by property, such as a house, and the borrower is responsible for paying back the money over time, often on a regular schedule like monthly payments. An 5-year mortgage ARM (arm) allows the borrower to make lower payments every five years. This means that the interest rate will change each year based on how much the value of the property increases during those years. The term "mortgage 5-year ARM" is commonly used in financial markets and refers to a specific type of loan arrangement where the borrower can receive higher payments than they would under a fixed-rate mortgage. However, it's important to note that an 8- or 10-year ARM typically has higher interest rates and may be harder to qualify for.

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