ljlogoglass.jpg
Helping You Understand the Mortgage Process

Home


- Info/Resources -
Loan Jargon
Loan Programs
Loan Documents
Closing Costs
Credit Score
Property Taxes
Fixed vs. ARM
100% Financing
Stated Income
Ways of Holding Title
FHA
VA
Real Estate News
Calculators
FAQ


- Tools/Interactive -
Refinance
Application
Amortization
Newsletter
Contact Info


 - Personal Info -
Your Loan Status

 

Adjustable Rate Mortgage (ARM)

Is a mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Also sometimes known as the re negotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.

1-year ARM:  An adjustable-rate mortgage that has an initial interest rate for one year, and thereafter has an adjustment interval of one year.  The adjustment is based on a comparison of interest caps and the indexed rate.

3/1 ARM:  An adjustable-rate mortgage that has an initial interest rate for three years, and thereafter has an adjustment interval of one year.  The adjustment is based on a comparison of interest caps and the indexed rate.

5/1 ARM:  An adjustable-rate mortgage that has an initial interest rate for five years, and thereafter has an adjustment interval of one year.  The adjustment is based on a comparison of interest caps and the indexed rate.

7/1 ARM:  An adjustable-rate mortgage that has an initial interest rate for seven years, and thereafter has an adjustment interval of one year.  The adjustment is based on a comparison of interest caps and the indexed rate.

10/1 ARM:  An adjustable-rate mortgage that has an initial interest rate for ten years, and thereafter has an adjustment interval of one year.  The adjustment is based on a comparison of interest caps and the indexed rate.

Back to Loan Programs


detsmall.jpg (1123 bytes)Looking for a specific mortgage term?   Click Here to search our Jargon dictionary.


Looking to Advertise in this location?  Contact Us for rates




2002-2004 LoanJargon.com | Contact Us