Characteristics of Adjustable Rate Mortgage
Adjustable rate mortgage, often referred to as ARM for short, is a mortgage loan, the interest rate of which changes periodically based on index. Though not as widely used as fixed rate mortgage,...
View ArticleFIR: Fully-Indexed Rate
To avoid getting confused with ARM initial rate, it is important to understand the difference between ARM initial rate and fully-indexed rate first. Interest rate is always our primary concern whether...
View ArticleHow Do Interest-Rate Caps Affect Your ARM?
When talking about adjustable-rate mortgage, many of you may more or less know about these terms: initial interest rate, adjustable period, index rate…Indeed, these are the most important basic...
View ArticleOption Adjustable-Rate Mortgage (ARM)
If you are looking for adjustable-rate mortgage (ARM), you should know that there are actually several variants of ARMs. Among these variants is Option ARM which offers payment flexibility to...
View ArticleBeginners Guide to VA Adjustable-Rate Mortgage
It is no secret that the Veterans Affairs (VA) department offers home ownership assistance to millions of veterans and their families. While many of these loans are fixed-interest mortgages, VA loans...
View ArticleHybrid ARMs: Hybrid Adjustable Rate Mortgages
When you shop for a home loan, there are so many options that can be overwhelming. If you are in the market for a home loan and not planning to reside in your home indefinitely, then a hybrid...
View ArticlePayment Shock You May Face with an Adjustable Rate Mortgage (ARM)
As we know, adjustable-rate mortgage (ARM) is a loan with an interest rate that is fixed for a set period of time and then adjusts thereafter. During that period of time, the interest rate (that is...
View ArticleNegative Amortization Involved in Adjustable Rate Mortgage (ARM)
Indeed, compared to fixed-rate mortgage, an ARM is remarkably flexible to homebuyers. Generally, with an ARM, you can purchase larger house than you could otherwise. Also, it is a cheap way to get a...
View ArticleHow to Do Your FHA Assumable Mortgage
Those who have doubts or even complaints about FHA mortgages can give them a break now. Besides the lower rate, less down payments, lower closing fees, and less stringent credit requirements, FHA...
View ArticleWhat is Cash Flow Adjustable Rate Mortgage?
According to your understanding, a typical mortgage bill that arrives in the mail points out the amount of money that you have to pay. You don’t have a choice in determining how much to pay. Indeed, it...
View ArticleARM: Interest-Rate Caps vs. Payment Caps
As we know, adjustable rate mortgage with interest rate probably increasing over time brings borrowers the risk of financial hardship. To limit this risk, limitations on charges – known as interest...
View ArticleDoes FHA Offer Adjustable Rate Mortgage Products?
When it comes to FHA loans, many of you may not be aware that the FHA offers ARMs to eligible borrowers. Indeed, FHA’s most popular home loan is the Fixed-Rate 203(b) loan. But, this doesn’t mean the...
View ArticleAdjustable Rate Mortgage for Veterans
VA loans, guaranteed by the U.S. Department of Veterans Affairs (VA), offer a way for eligible veterans to purchase a home with no down payment or refinance up to 100% of their home. While many of...
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