I am looking over some paperwork for a 5/1 ARM. The loan information is as follows:
Interest Rate: 2.75
- Lifetime Cap: 5.00
- First Adjustment Cap: 1.00
- Annual Cap: 1.00
- Margin: 1.75
I understand that my first 5 years would be predictable at 2.75% but what are some scenarios that could happen on my 6th year and so forth?
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