The Pros and Cons of Adjustable Rate Mortgage
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 [...]
Saturday October 30th, 2010 in , Adjustable Rate Mortgage, Advantage, Cmt, Constant Maturity Treasury, Fixed Mortgage, Fixed Rate Mortgage, Indexes, Initial Interest Rate, Interest Rates, Lending Institution, Libor, London Interbank Offered Rate, Mortgage Interest, Mortgage Payment, Mortgage Rate, Mortgages, Pros And Cons, Six Months, Treasury Securities | No Comments »