Question: what is the difference between a 30 year fixed and a 5/1 arm?
Answer: The 30-year fixed-rate mortgage is the U.S. industry-standard mortgage product, and has been for some time. And it's pretty easy to understand why: The interest rate stays the same for the entire term of the loan. ... On the other hand, with a 5/1 ARM, your initial interest rate will be fixed for a period of five years.