The Pros and Cons of Adjustable Rate Mortgage
August 12, 2010 by Editor
Filed under About Mortgages
An adjustable rate mortgage, commonly referred to as an ARM, is a mortgage where the interest rate on the mortgage changes periodically, on a schedule, according to an index. The most common indexes used to determine the interest rates are:One-year constant maturity treasury securities (CMT)Cost of Funds Index (COFI)London Interbank Offered Rate (LIBOR)A lending institution’s […]