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Is it an adjustable-rate mortgage?
Is it an adjustable-rate mortgage? | Bankrate

Is it an adjustable-rate mortgage?

The Loan Estimate tells you in multiple places whether the loan is an adjustable-rate mortgage, or ARM.

On Page 1, the "Loan Terms" section provides basic information about the ARM's features:

  • The initial interest rate.
  • How often the interest rate will be adjusted.
  • How high the interest rate can go and when it can reach the maximum.

On Page 2, you will find 2 tables that provide detailed information about the ARM:

  • The "Adjustable-Interest Rate (AIR) Table" describes the index and margin, initial interest rate, the lifetime caps on interest rates, the timing of rate adjustments, and periodic caps.
  • The "Adjustable-Payment (AP) Table" describes whether the loan allows interest-only payments and other exotic payment features. It describes the minimum and maximum principal-and-interest payment after the 1st adjustment, and the maximum possible principal-and-interest payment if the interest rate maxes out.


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