Is a fixed rate or ARM mortgage the best choice for you? Both fixed rate mortgages and adjustable rate mortgages (ARMs) have been popular with home buyers and for refinance loans. Both can have their pros and cons. So which is the right type of mortgage for you? The Luxury of…
Adjustable rate mortgages have remained one of the most attractive alternative options available those buying a home. So how do they work? What are their real pros and cons, and are one of these purchase mortgage loans for you? Adjustable rate mortgages (ARMs) are often advertised with lower interest rates than…
An adjustable rate mortgage (ARM) actually begins with a term period where the introductory interest rate is locked in and cannot change. After this time passes, the rate is adjusted on an annual bases via a preset formula devised by the lender, thus affecting monthly mortgage payments. Several of the most…
As indicated by the name, an adjustable rate mortgage (ARM) is the opposite of a fixed rate mortgage. An adjustable rate mortgage will have a specific fixed period where the rate doesn’t change, after which annual adjustments will be made according to a lender-set formula (often increasing). Adjustable rate mortgages are…
There are two main types of mortgages: fixed and adjustable. Fixed mortgages are fairly straightforward. You take out a loan and your monthly payments stay the same during the entire loan. Adjustable rate mortgages are a little more complicated because your monthly payments can change over time. It’s important to understand…
Adjustable rate mortgages have a bit of a mixed reputation. These are mortgages with monthly payments that can change based on the market interest rate. This feature makes an adjustable mortgage loan a bit riskier than a fixed rate loan but can also potentially make these loans more affordable. It’s important…
