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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