30. In a 5/1 “hybrid” adjustable-rate mortgage (ARM), the initial interest rate is fixed for 5 years and then is adjusted annually. (You usually pay “points” up front at closing in exchange for the “rate lock” for the first 5 years.) Suppose that you buy a house with a $200,000 mortgage with a 5/1 ARM with initial rate of 4%; suppose that 5 years later, the interest rate goes up to 6%.