Hybrid ARM with a five-year initial fixed period and six-month adjustment intervals afterward.
A 5/6 ARM is a hybrid adjustable-rate mortgage with a five-year initial fixed-rate period followed by adjustment opportunities every six months.
The 5/6 ARM matters because borrowers may see ARM labels where the second number is not “1.” In a 5/6 ARM, the first number describes the initial fixed period, while the second number describes the later adjustment interval in months.
That difference is practical. A 5/1 ARM and a 5/6 ARM can both have five-year initial fixed periods, but the later adjustment rhythm is different.
Borrowers encounter 5/6 ARM labels while comparing quotes or reviewing ARM disclosures. The term becomes practical when the borrower is trying to understand how often the payment may change after the first five years.
After closing, the borrower watches for reset information and adjustment notices as the initial fixed period ends.
| ARM label | Initial fixed period | Later adjustment interval |
|---|---|---|
| 5/1 ARM | 5 years | Usually annual |
| 5/6 ARM | 5 years | Usually every six months |
| 7/6 ARM | 7 years | Usually every six months |
| 10/6 ARM | 10 years | Usually every six months |
A borrower compares a 5/1 ARM and a 5/6 ARM with similar starting payments. Both keep the initial rate fixed for five years, but the 5/6 ARM can adjust more frequently after the first reset period begins.
5/6 ARM differs from 5/1 ARM because the initial fixed period may be the same, but the later adjustment interval is different.
It differs from Adjustable-Rate Mortgage (ARM) because ARM is the broad category. The 5/6 label tells the borrower the specific timing pattern.
It also differs from Adjustment Period because adjustment period is one component of the loan; 5/6 ARM is the whole loan label.