Sample ARM Mortgage Comparison

Let’s say you are comparing two adjustable rate mortgages on a $200,000 loan. One is an ARM where the interest rate is fixed for 1 year and may change every year after that, and the other loan is an ARM which is fixed for 5 years (often written as 5/1). Let’s say you think you’ll live in […]

Adjustable Rate Mortgages

An Adjustable Rate Mortgage (ARM) has a variable interest rate component, which means the interest rate will change during the life of the loan. An ARM might be a tempting choice over a fixed rate mortgage because the starting interest rate is often lower than a Fixed Rate mortgage. Before determining which type of home […]