Finance
A 'hybrid ARM' in Louisiana is a mortgage that features:
ABoth adjustable and government-insured components
BA fixed interest rate period followed by periodic adjustments — such as a 5/1 ARM (fixed for 5 years, adjusting annually after)✓ Correct
CA rate that adjusts twice per year only
DA combination of FHA and conventional financing
Explanation
A hybrid ARM combines features of fixed-rate and adjustable-rate mortgages — providing an initial fixed-rate period (offering payment stability), followed by a period of periodic rate adjustments. Common hybrids include 3/1, 5/1, 7/1, and 10/1 ARMs.
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