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Adjustable Rate Mortgage what is it?

A mortgage in which the interest rate is set regularly based on an index.

Sub: #1 posted on Tue, 12/08/2009 - 01:26

bakerjon bakerjon

(Posts: 1086 | Credits: )

ARM's come in different types, typically 3,5,7, 10 year. The shorter the term, the lower the interest rate. The rate you get is fixed for the term of the arm, thus a 5 year ARM gives you a fixed rate for 5 years. At the end of the 5th year your rate could go up or down depending on the current market rate.

Sub: #2 posted on Tue, 12/08/2009 - 17:12

steve1111 steve1111

(Posts: 3 | Credits: )

They typically go up a point a year but most generally they are not good if you are going to be staying in your home a long time.

Sub: #3 posted on Wed, 12/09/2009 - 15:26

Mary Adkins Matthews Mary Adkins Matthews
Moderators Cum Industry Expert
(Posts: 755 | Credits: )

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