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ARM - Adjustable Rate Mortgages - part 1

by Dan Lewis

Traditionally, homebuyers could look to two forms of mortgages - fixed rate and adjustable mortgages. While there are now many more options, this article takes a look at the adjustable rate mortgage.
What is an ARM Loan?

An adjustable rate mortgage ["ARM"] is a basic mortgage with one important exception. With an ARM, your interest rate will start low but typically move up throughout the link of the loan. The timing of the movements is dictated by the terms of the loan. The rate may be adjusted every month, but more typical periods are every six or twelve months. Most adjustable rate mortgages also have a cap on the amount the interest rate can be raised in a particular period.

"ARM" Yourself?

Read the end of
ARM - Adjustable Rate Mortgages


Related Adjustable Rate Mortgage Articles:

Adjustable Rate Mortgages Offer Alternatives For Home Buyers
About the advantages of adjustable rate mortgages.

So Which Is Better Fixed Rate Or Adjustable Rate Mortgage?
Fixed rate or adjustable rate mortgage?

Adjustable Rate Mortgages - Talking About Interest Rate Caps
Many people have jumped on adjustable rate mortgages to take advantage of the historically low interest rates we have seen over the last few years. Rates are now rising, which means you need to understand caps.

Adjustable Rate Mortgages - Interest Rate Strategy
Over the last few years, many people squeezed into new homes using adjustable rate mortgages. With interest rates going up, you now need a new interest rate strategy.

Adjustable Rate Mortgages - Determining Rates
Adjustable rate mortgages are to home buyers as carrots are to bunnies - very tempting. The secret to figuring out if an adjustable rate mortgage is a good deal is the rate index used.

Related Adjustable Rate Mortgage Questions:

Other resources for Adjustable Rate Mortgage

Adjustable rate mortgage payments?
i just purchased a home with an adjustable rate mortgage and am starting to make payments and have several options...is it better to add more to the principal or escrow as opposed to just paying the interest only payment..for instance my payment is 00.00 and i usually but not always have some extra let's say 0 extra to put on the house payment...i have the choice to put the extra on the principal or escrow? which is the best
read answers...

Adjustable rate mortgage calculations.......?
My arm will adjust from 5.5% in December 2007. I'm not sure we will refi since we plan to move from this home in the fall. However, if we do stay (in case home takes longer to sell) what will interest rate adjust to? Prime is at 8.75% now? Does it adjust to that rate? Just asking.....
read answers...

Will the adjustable rate mortgage increase the number of US families at risk of foreclosure?
I have noticed an increase in the last two months.
read answers...

I have an adjustable rate mortgage and my mortagage has gone up recently considerable. My credit is not good.
Is there is anyone who can help me get a mortgage to refinance my mortgage even though i have bad credit.
read answers...

I have an adjustable rate mortgage at 5.785 that will adjust again in Sept. 07.?
Should I fix now or wait to see if the rates go down this summer?
read answers...

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