# Eligibility of Adjustable Rate Mortgages
> **US Department of Housing and Urban Development** · Final rule. · Published 2005-12-06 · Effective 2006-01-05 · 70 FR 72696
## Document
- **Document number:** 05-23648
- **Category:** hud-other
- **Agency:** US Department of Housing and Urban Development
- **Federal Register citation:** 70 FR 72696
- **CFR reference:** 24 CFR 203
- **Publication date:** 2005-12-06
- **Effective date:** 2006-01-05
- **Docket:** Docket No. FR-4946-F-02
## Abstract

On March 29, 2005, HUD published an interim rule making available a new adjustable rate mortgage (ARM) product. In accordance with statutory authority, this rule enabled the Secretary to insure five-year hybrid ARMs with interest rates adjustable up to two percentage points annually (this type of mortgage is known as a 5/1 ARM). The lifetime cap on annual interest rate adjustments for five- year ARMs was set at six percentage points. This final rule follows publication of the March 29, 2005, interim rule, and makes no changes at this final rule stage.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2005/12/06/05-23648/eligibility-of-adjustable-rate-mortgages)
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