I agree with the first answer
10/1 ARM would mean that the rate is fixed for the first 10 years, then it will adjust every 1 year after that. I've never heard of a 10/1 ARM though.
There are some loans called interest first loans. For example, you would pay interest only for the first 5 or 10 years, then it would become a fixed rate loan for the next 30 years. These typically aren't a good idea because the only offer payments a few dollars less than a standard 30 year fixed.
The best thing is to make sure you are working with a mortage broker that you can trust, and have them explain it to you. Its hard to read all the fine legal print when buying a house, but scan through and look for key elements (maybe even highlight them for future reference). When I bought my house I scanned through the documents, and verified that the interest rate was what I expected, verified that it was a fixed rate, and verified what my monthly payments would be (and that they were fixed).
· 1 decade ago