What is a 3/1 ARM?
The Bankrate.com financial term of the day is: "3/1 ARM"
A "3/1 ARM" -- that sounds like a military command, doesn't it? Actually, it's an adjustable-rate mortgage, or ARM, that has a steady interest rate for the first three years. The rate adjusts every one year after that, and the adjustments are based on some other benchmark rate. There are limitations on the rate changes.
A 3/1 ARM is a home loan with a rate that can start changing just as you're getting comfortable.
To find a great rate on a home loan, visit the Mortgage section at Bankrate.com.