what does it mean if we have a 3/27 ARM?

Author Message
Icon Mini Profile kmhoeft




Joined: 26 Aug 2006

Posts: 1

1.15 Dollars($)
PostPosted: Sat Aug 26, 2006 8:32 am    Post subject: what does it mean if we have a 3/27 ARM?

what does it mean if we have a 3/27 ARM?
doolittle

Guest






PostPosted: Sat Aug 26, 2006 10:11 pm    Post subject:

Hi K,

3/27 ARM is a 30 year amortized loan with the intial rate remaining fixed for the first 3 years. After 3rd year, the rate adjusts and varies at regular intervals till the end of the loan term.
Icon Mini Profile Caron
Caron
Moderator


Joined: 19 Jul 2005

Posts: 1562
Location: florida
266.54 Dollars($)
PostPosted: Sun Aug 27, 2006 8:38 pm    Post subject: RE: What is 3/27 ARM?

Hi,

A 3/27 ARM means that you have an adjustable rate mortgage with a total loan period of 30 years. The low initial interest rate will remain fixed for the first 3 years. Hence you don't have to worry much about the payments in these 3 years. But at end of 3 years, the interest rate will adjust itself with respect to the index that is linked to your ARM.

The interest rates will continue to adjust for the remaining loan period, that is, 27 years. The adjustment period for this ARM will however depend on the agreement between you and the lender.

Thanks,

Caron.
Quick Reply
Your Name
Subject
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Highlights
Helpful References
Mortgage Guide
Mortgage Terms
Mortgage News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Calculators     [View all]
Are you eligible for loan?
How much you can afford?
Calculate monthly payment
Calculate APR


Financial Tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.

MortgageFit Live Help

Explore the lender near you

Google Map Image

MF Talk



DebtConsolidationCare    Insurance community: We Make You Insurance Smart    CreditMagic: Helping you build up credit


We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0