Home - Mortgage Loans | Personal Loans | Bad Debt Loans | Foreclosure Loans
Apply for a Loan | Best Auto Loans | Best Bad Credit Auto Loans | Best Bad Credit Loans | Best Bill Consolidation Loans | Best Cash Advance Loans | Best Credit Cards | Best Credit Repair Tips | Best Debt Consolidation Loans | Best Free Credit Reporting Tips | Best Home Equity Loans | Best Mortgage Loans | Best Pay Day Loans | Best Personal Loans | Best Products on the Internet | Best Unsecured Loans
Great Financial Advice
Apply for a Loan
Latest Financial News
Rate Lock Advisory
Best Products
Join Our Mailing List
Contact Us
Loan Articles Index
Auto Loans
Bad Credit Auto Loans
Bad Credit Loans
Bill Consolidation Loans
Cash Advance Loans
Credit Cards
Credit Repair Tips
Debt Consolidation Loans
Debt Reduction Loans
Foreclosure Loans
Free Credit Reporting Tips
High Risk Loans
Home Equity Loans
Home Loans
Lawsuit Loans
Mortgage Loans
Pay Day Loans
Personal Loans
Products on the Internet
Real Estate Services
UK loans
Unsecured Loans
Loan Article Index
Loan Articles A-G
Loan Articles H-Q
Loan Articles R-Z
Mortgage Calculators
Mortgage Calculator
Mortgage Amortization Calculator
Rent vs. Buy Calculator
How Much Can I Afford Calculator
Auto Payment Calculator
Click here to Sign up for Email and Newsletter

 

redhotloantips fat loss


ARM Loans

Written by: Cecilia Sherrard/Mary Lou Call

ARM stands for Adjustable Rate Mortgage. There are various types of ARM products with the most common being the 1/1, 3/3, 5/1 and 7/1 ARM. The first number tells you the length of time the Rate will be locked. The second number indicates the length of the adjustment period after the initial rate lock period. For example, the 7/1 ARM has the rate locked for seven years or 84 months. Then it will adjust annually thereafter. ARMs can be amortized over 15, 20 or 30 year time periods which can allow for lower monthly payments. One fear that most consumers have is that the rate can adjust. However, most ARMs come with caps which are usually 2% per year or 6% over the life of the loan. This means, during the first adjustment period, the rate can't go up or down more than 2%. Let's look at the 7/1 ARM again. If the initial rate is 5.25%, then the rate can't go higher then 7.25% at the end of the initial rate lock period of seven years or 84 months.

ARM rates tend to be initially lower than fixed rate mortgages. If you plan on only being in your home for 7 to 10 years, lock in a 7/1 ARM and take advantage of the lower rate versus a 30 year fixed rate mortgage. Everyone's situation is different, but the average life of a mortgage loan ranges from 7 to 12 years because people often move or refinance their loan. So, why not enjoy the lower rate?

For more information on ARM products, contact Mary Lou Call at First Federal of Lakewood. She can be reached at 216-529-5637. Or for more real estate information and articles visit http://www.youshouldown.com

About the author:

Cecilia Sherrard is a full time dedicated Realtor in Northeast Ohio. With years of experience and knowledge, she has maintained a multi-million dollar producer status. Servicing areas such as: Westlake, Lakewood, North Olmsted, Rocky River, Cleveland, Brook Park, Parma, etc. Visit her website at http://www.youshouldown.com


Other Related Articles:

No Income Verification Home Equity Loan
A no income verification home equity loan is a second mortgage loan that does not require you to provide income documentation to qualify for the loan. This type of loan is great for homeowners who need a home equity loan but have hard to...read more

Low Interest Payday Loan - How To Figure Out The Apr Of A Payday Loan
The annual percentage rate (APR) of a payday loan is a helpful tool to compare rates of lenders. According to the "Truth in Lending Act," passed by Congress, payday companies are to provide you with the APR. Some companies list this...read more

3 Important Things To Consider Before Taking Out A Personal Loan
Personal loans are a simple and easy way to borrow usually between 1000 and 25000 and can be a good way to finance the purchase of a car, holiday, home improvement or anything else that requires an up front lump sum payment. The main...read more


Return to Home

468x60

Best Auto Loans, Best Bad Credit Auto Loans, Best Bad Credit Loans, Best Bill Consolidation Loans, Best Cash Advance Loans, Best Credit Cards, Best Credit Repair Tips, Best Debt Consolidation Loans, Best Debt Reduction Loans, Best Foreclosure Loans, Best Free Credit Reporting Tips, Best High Risk Loans, Best Home Equity Loans, Best Home Loans, Best Lawsuit Loans, Best Mortgage Loans, Best Pay Day Loans, Best Personal Loans, Best Products on the Internet, Best Real Estate Services, Best UK loans, Best Unsecured Loans
Subscribe to Mailing List | Private Policy | Unsubscribe | Site Map