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1 Year Adjustable Rate Mortgage

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Sam Site Admin Joined: 21 May 2005 Posts: 281 Location: CALIFORNIA 117.49 Dollars($)	Posted: Fri Apr 09, 2004 3:35 am    Post subject: 1 Year Adjustable Rate Mortgage 1 Year Adjustable Rate Mortgage (ARM) is a mortgage in which the initial interest rate remains fixed for a year after which the rate adjusts itself annually. The adjustment in the mortgage rate depends on the financial index tied to the ARM and the rate cap. The index moves up with the movement in interest rates prevailing in the market. There are a number of indexes used by lenders offering the ARMs. A preset margin added to the index gives the Indexed Rate or actual rate on the ARM. The rate cap limits the rise or fall in this rate for each adjustment period or for the entire loan term. Related Articles: Features of ARM and Popular Indexes Knowing the Indexed Rate

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