Types of Standard ARMS...good info for buyers!

Types of Standard ARMs (Adjustable Rate Mortgages)

Several adjustable rate mortgages  include:

• 6-Month Certificate of Deposit ARM
• 1-Year Treasury Spot ARM
• 6-Month Treasury Average ARM
• 12-Month Treasury Average ARM.

When ARM's lag behind the market it allows you to take advantage of lower interest rates even if the market's rates are rising quickly. On the otherhand ARMs that react quickly to the market would let the borrower benefit from a market with falling interest rates.  In order to figure out which type of ARM you need you can speak to your mortgage broker/banker and you can watch the market.