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An ARM ,or adjustable rate mortgage, is a mortgage product with an interest rate that is tied to a certain economic index and that is fixed for a certain period of time (e.g. 1,3,5,7, or 10 years). After the fixed period the interest rate will periodically adjust as the economic index changes. In the mortgage industry, "ARM" has almost become a swear word. We can thank the media for this. So many bad things have been associated with an ARM... foreclosures, pre-payment penalties, rising payments, option-ARMS, negative amoritization, etc. The stigma has gotten so bad that I'm afraid that if I … (0 comments)
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Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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