VARIABLE LOANS
ARM (ADJUSTABLE-RATE) LOAN
Adjustable rate mortgages (ARM’s) have interest rates that may increase or decrease during the life of the loan. ARM interest rates are based on a variable index added to a fixed margin. The index can change according to market conditions.
The interest rate you pay is based on a fixed margin plus a variable index
Most ARM loans adjust every 6 months
There are caps as to how much your rate can increase at any one time
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NMLS #248170 | CA Department of Real Estate - Real Estate Broker - DRE #01109636