ARM7 of 11An adjustable-rate mortgage, or ARM, is a home loan in which the interest rate can change based on movement in an agreed-upon index, such as the London Interbank Offered Rate, or Libor.Usually, ARMs start with lower rates than fixed loans. But there's always the risk that the borrower can eventually end up paying more than if he or she had secured a fixed rate. Related Articles:Rule would refund feesReturn of the ARMKnow your mortgage capsNew form for closing costsRelated Links:Key mortgage paperworkMortgage essentialsLow score, high payment?Ratios rule mortgages advertisement
An adjustable-rate mortgage, or ARM, is a home loan in which the interest rate can change based on movement in an agreed-upon index, such as the London Interbank Offered Rate, or Libor.
Usually, ARMs start with lower rates than fixed loans. But there's always the risk that the borrower can eventually end up paying more than if he or she had secured a fixed rate.
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