Should You Refinance to an Adjustable Rate Mortgage?
(via Home Loan Advisor) An adjustable rate mortgage (ARM) is a type of mortgage where the interest rate charged on the outstanding balance varies based on a specified schedule. The interest rate is initially fixed for a given period after which the rate is set periodically. There are many advantages associated with the adjustable rate […]
What You Should Know About ARMs
Adjustable rate mortgages, or ARMs, are mortgages with varying interest rates that are usually determined by performance of benchmark indexes. As the index rate changes, your rate of interest will be adjusted periodically. Here is a brief ARM glossary: Index- The index is essentially a guide that lending institutions use to measure changes in the […]
All About Adjustable Mortgages
An ARM or an adjustable mortgage has a fixed rate of interest during the initial period of the loan. This initial period can range between one month and 7 or more years. When the initial period expires, the interest rate will change. Note that borrower’s monthly payments can change even if the interest rates remain […]
