mortgage

What is a 3/1 ARM?

 

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.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
 

A little research could save you BIG on interest.

Don't have time? Our rate-tracker tool saves you time and money. Delivered Thursdays.
 
advertisement
Partner Center
advertisement

Blog

Tara Baukus Mello

Flat-rate car towing as needed

Goodyear has introduced a roadside assistance program where you pay a flat rate whenever you need a tow with no annual fee.  ... Read more


Connect with us