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What is an ARM – Adjustable Rate Mortgage?

April 26, 2017adjustable rate mortgage arm

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What is an ARM – Adjustable Rate Mortgage?

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An adjustable rate mortgage has an interest rate that is fixed over the initial predetermined term of the loan. Different ARM programs offer different predetermined terms, normally from 1 – 10 yrs. An ARM will begin with an interest rate that is lower than interest rates available for fixed rate mortgages. After the fixed, predetermined term, the interest rate adjusts (normally every 6 or 12 months).