LOAN PROGRAMS - continued

5/25 and 7/23 programs

These loans are fixed for 5 or 7 years, adjust once (with no cap to the adjustment), and are then fixed for the remaining 25 or 23 years. The pricing on these is similar to the hybrid ARMs with similar advantages over the fixed. Different lenders use the notations differently, so inquire as to the specific meaning of the label: some lenders call a 5/1 a 5/25.


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