Mortgage Terms Explained: ARM
| Money : Mortgages ARM stands for Adjustable Rate Mortgage. This is a specific type of loan that charges interest at a set period on a rate that is based on a financial index. Because the interest rate is based on a standard financial index, then of course it can go both up and down. With this type of mortgage there is normally a limit imposed on how much the interest rate can increase, to protect the person(s) loaned the money from very large increases.
 Questions about mortgages:
|
|
Tweet this!
