adjustable rate mortgages: Simple Real Estate Definitions: Adjustable Rate Mortgage
- 05/05/08 10:51 AM
Adjustable Rate Mortgages are mortgages for which the interest rate is subject to change over time according to pre-defined rules. ARM is a common acronym for Adjustable Rate Mortgage and every ARM has similar features: An initial fixed period during which the mortgage rate doesn't change An initial interest rate that is charged during the initial fixed period An index that is used to calculate the new interest rate after an adjustment. An index is a variable and is usually assigned to LIBOR or Treasuries. A margin that is a constant added to the index to calculate the new interest rate … (0 comments)
Adjustable Rate Mortgages are mortgages for which the interest rate is subject to change over time according to pre-defined rules. ARM is a common acronym for Adjustable Rate Mortgage and every ARM has similar features: An initial fixed period during which the mortgage rate doesn't change An initial interest rate that is charged during the initial fixed period An index that is used to calculate the new interest rate after an adjustment. An index is a variable and is usually assigned to LIBOR or Treasuries. A margin that is a constant added to the index to calculate the new interest rate … (0 comments)
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