On an adjustable-rate mortgage, the margin will:

The margin on an adjustable-rate mortgage (ARM) is a predetermined percentage that is added to the index value to determine the interest rate that the borrower will pay at each adjustment period. This margin remains constant over the life of the loan, which is critical for borrowers to understand because it provides certainty in how their interest payments will be calculated.

Unlike the index, which can fluctuate based on prevailing market conditions, the margin is not subject to change; it is established when the loan is originated. This stability allows borrowers to have a clearer understanding of their financial obligations over time, irrespective of market variations.

Therefore, since the margin does not change and remains constant throughout the duration of the mortgage, the assertion that it only applies for the first five years is misleading because it ignores the margin's role for the entirety of the loan period.