Adjustable Rate Mortgage
- Topics:
- Commercial Lending
- Source:
- American Capital
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Overview: An adjustable rate mortgage, or an "ARM" as they are commonly called, is a loan type that offers a lower initial interest rate than most fixed rate loans. The trade off is that the interest rate can change periodically, usually in relation to an index, and the monthly payment will go up or down accordingly. This article also explains how an adjustable rate mortgage works?
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