What happens at the end of my 5/1 arm does my loan then stay at the 6.1% 30yr i first locked in?

Thanks preston ill look at that.

No. Read the adjustable rate rider that came with your closing package from the title company. It is usually based on an index like the 6 month libor average plus a margin. Your rate will go up but it will state how much on the rider. After the first adjustment it can adjust every month, every 6 months, or every year after that depending on the type of arm you got.

Update: Don't listen to these people below saying your rate will go up 4-6%. Every arm is different and there is a good chance your won't go up much. Look at your papers. The 6 month libor is at 4.91 right now and I have seen many arms where the margin is only 2.25 so if that is the case with you then your rate only goes to 7.16% which isn't a really big difference. If you plan on keeping the home then I would suggest looking into refinancing but if you plan to sell in the next year or 2 just keep the adjustable and don't lose 5k in equity refinancing.

not good. you better refinance NOW.

ARM stands for adjustable rate mortgage, so yes the interest rate is going to go up most likely 4-6%

On a 5/1 arm, at the end of the 5th year the rate is adjusted to meet current rates. Every year afterwards it adjusts again to meet the current rates. ARM are not locked in ever. You have to refinance to a fixed rate mortagage. Right now if your rate is going to adjust soon then it's going to make a huge jump. I just went through through the same thing and had to refinance because my payment was going to go up $400 if I let the arm end and readjust. The arm was great 5 years ago and not so good right now I guess.

A 5/1 ARM means the rate is fixed for the first five years. Afterwords, it becomes a variable rate loan - hence ARM - adjustable rate mortgage.

Your term is probably 30 years. This means all funds would have to be repaid by the end of 360 months or 30 years.