An adjustable-rate mortgage (ARM) is a loan in which the interest rate may change periodically, usually based upon a pre-determined index. The ARM loan may include an initial fixed-rate period that is typically 3 to 10 years.
3 Reasons an ARM Mortgage Is a Good Idea. One of the most common types of adjustable rate mortgages, the 5/1 ARM, features a fixed rate for 5 years, after which the rate resets once per year up.
Your interest rate is also determined by the type of mortgage interest rate you choose, a fixed-rate or an adjustable-rate mortgage. Fixed-rate and adjustable-rate periods of an ARM. Adjustable-rate mortgage loan products feature an initial fixed-rate and adjustable-rate periods. The most common fixed-rate periods are 3, 5, 7 or 10 years.
Additionally, the consumer can access incredible rates now, comparable with any ARM. "We believe this 15/15 ARM will be the ideal mortgage for nearly anyone in the marketplace. It’s the best of both.
a cloud-based platform provider for the mortgage finance industry, 9.2 percent of borrowers took out an ARM in December – an eight-year high and a significant increase from the 5.5 percent share for.
The difference between a fixed rate and an adjustable rate mortgage is that, for fixed rates the interest rate is set when you take out the loan and will not change. With an adjustable rate mortgage, the interest rate may go up or down.
As the name implies, adjustable-rate mortgages (ARMs. and/or you expect your income to rise enough to absorb higher mortgage payments. Before you sign up for an ARM, though, it’s important to.
. between the rate on a 5/1 ARM and a 15-year fixed mortgage. If you can afford the higher monthly payment, locking in the same rate for 15 years rather than 5 years may be advantageous. Remember.
A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.
Get the information you need on adjustable mortgage rates and ARMs. RateMarketplace.com is your resource for online mortgage rates and quotes. Whether it's.
The adjustable-rate mortgage (ARM) share of activity increased to 7.1 percent of total applications. The FHA share of total.