Adjustable-rate mortgage sentence example
With an adjustable rate mortgage (ARM), your interest rate is directly tied to economic indicators, meaning the amount of interest you pay during a given period can fluctuate, sometimes to the tune of several hundred dollars a month.
This adjustable rate mortgage lets homebuyers chose their monthly payment option.
For example, you can click a button to find out the impact on interest paid and payment amounts by switching the worksheet to figure an adjustable rate mortgage.
If the answer is yes to all three questions, an adjustable rate mortgage may be right for you.
A refinance can also help you get rid of that unpredictable adjustable rate mortgage and into a lower fixed rate.Advertisement
For example, interest rates may have dropped since you obtained your mortgage, or perhaps that adjustable rate mortgage isn't working out quite as good as it once was.
Though there are benefits to getting an adjustable rate mortgage (ARM), there are also drawbacks to choosing this rate type over a fixed rate.
Unless you want to wind up with an adjustable rate mortgage you are probably going to pay a higher interest rate than the one you see on the commercial.
Hello, I am currently involved in an adjustable rate mortgage which is now adjusting to an alarming 15% interest rate.
Plenty of homeowners are in the same situation, with an adjustable rate mortgage and rising payments.Advertisement
They offer loans amortized over a fifty year period which carry a lower monthly payment and a bi-weekly adjustable rate mortgage with an intro rate as low as 1.5 percent.
Ditech's Adjustable Rate Mortgage interest rate is fixed for the first three, five, or seven years.
However, it's important to remember that once the initial fixed rate period ends, the mortgage converts to an adjustable rate mortgage.
The various terms they offer are also comparable to other lenders, although Encore does feature some adjustable rate mortgage terms which are not offered by many lenders.
Online adjustable rate mortgage calculators can help you to see the big picture by helping to determine what your adjustable mortgage payments may be.Advertisement
The fully adjusted rate takes the current index plus the margin (a fixed number added to the index) to compute the rate on an adjustable rate mortgage.
Online adjustable rate mortgage calculators can help you understand the worst case situation.
The reasoning behind this is your interest rate will always be low with a fixed rate mortgage, whereas an adjustable rate mortgage secured during low interest rates probably has nowhere to go but up.
Members of the military and other people who move often may benefit from an adjustable rate mortgage if the main concern is low interest rates.
Interest for a fixed rate mortgage is usually priced higher than an adjustable rate mortgage.Advertisement
For example, individuals with adjustable rate mortgage (ARM) loans often seek fixed rate refinance options when mortgage rate trends indicate that rates will be up when it is time for the interest rate to adjust.
Yahoo Real Estate - View graphs showing trends over the past six months for 15 and 30 year fixed rate mortgages and one and five year adjustable rate mortgage loans.
Keep in mind that an adjustable rate mortgage (ARM) can encounter multiple interest rate increases over the years, and for this reason you want to make sure that you are looking at the bigger picture.
You have the option of obtaining a Fixed Rate mortgage or the FHA's new hybrid adjustable rate mortgage (ARM).
Typically, the interest rate on an adjustable rate mortgage is set based on a combination of the LIBOR rate plus a margin of some pre-agreed percentage.Advertisement
If you have an adjustable rate mortgage or an interest-only mortgage, this formula will not work for you.
An adjustable rate mortgage may initially give you a lower interest rate than those of a fixed-rate mortgage; however, there is greater risk with the ARM because the rate is always subject to change.
You may check daily for the 15-year fixed rate, the 30-year fixed rate and the rate for an adjustable rate mortgage (ARM).
A 30 year fixed mortgage rate may also have a higher rate than the initial rate offered on an adjustable rate mortgage or a balloon mortgage.
An adjustable rate mortgage is tied to an index such as the Prime Rate or the LIBOR.Advertisement