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On a side note how do they advertise a 2.75% rate but an APR of 2.67%?

My understanding (could be wrong) is they calculate the APR by using today's interest rates for the adjustment period at year 5. If the ARM adjustment is based on the 1YR LIBOR + a margin, and if the adjustment was calculated on today's rates, the rate would adjust lower than the initial rate provided of 2.75%. This results in an APR lower than the initial rate.
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