What is Initial interest rate?
The starting interest rate of an adjustable rate mortgage (ARM). The initial interest rate on an ARM loan is fixed for a certain period then adjusts to reflect overall market rates. Fixed rate loans, on the other hand always have the same interest rate for the life (i.e. the full term) of the loan.
How long will mine stay unchanged?” Adjustable Rate Mortgages, or ARMs, which are coming to the end of their fixed initial interest rate period could be a serious liability for you down the road, especially with short term interest rates rising as quickly as they have been. Borrowers in ARM mortgages would be well advised to explore the option of refinancing their adjustable rate mortgage to convert to a fixed rate, while long term interest rates which set the payments of fixed rate mortgages are still low and qualifying for fixed rate refinancing is still easy. Contact a specialist to review your options at 414-303-1215 Your intial interest rate is locked in for a set period of time. After that, it will adjust to the current rate which is arrived at by adding a Margin and Index. A mortgage has a defined rate and fixed term length. This is different than the amortization, which is usually 30 years. For example, under a 2 year fixed rate term, the rate is fixed for two years. Be sure to
