  Filed Under: Dictionary Says  Definition of '5-6 Hybrid
Adjustable-Rate Mortgage - 5-6 Hybrid ARM'  An adjustable-rate
mortgage with an initial five year fixed interest rate after
which the interest rate begins to adjust every six months
according to an index plus a margin (or, the fully indexed
interest rate). The index is variable while the margin is fixed
for the life of the loan. 5-6 ARMs are usually tied to the six-
month London Interbank Offered Rate (LIBOR) index. .
Investopedia Says  Investopedia explains '5-6 Hybrid Adjustable-
Rate Mortgage - 5-6 Hybrid ARM'  When shopping for an ARM, the
index, the margin and the interest rate cap structure should not
be overlooked. In a rising interest rate environment, the longer
the time period between interest rate reset dates, the more
beneficial it will be for the borrower. So, in this case, a 5-1
ARM would be better than a 5-6 ARM. The opposite would be true
in a falling interest rate environment.  Additionally, different
indexes behave differently in differ