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ARM and Variable Mortgages
Everything you need to know to get lowest rate.
Avoid mistakes for more savings.
Find the Best Mortgage. |
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Adjustable Rate Mortgage (ARM)
ARM is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. This is done to ensure a steady margin for the lender, whose own cost of funding will usually be related to the index. Consequently, payments made by the borrower may change over time with the changing interest rate (alternatively, the term of the loan may change).
Should you refinance? This refinancing tip will answer some questions that may help you decide. If you do refinance, the process will remind you of what you went through in obtaining the original mortgage loan. That's because, in reality, mortgage refinancing is simply taking out a new mortgage. You will encounter many of the same procedures-and the same types of costs-the second time around.
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