Results for tag: "Adjustable Rate Mortgage"

An Adjustable Rate Mortgage (ARM) is a type of mortgage loan in which the interest rate is periodically adjusted based on an index. ARMs are typically offered with a fixed rate period of three, five, seven, or ten years, after which the rate adjusts annually. ARMs are attractive to borrowers because they offer lower initial interest rates than fixed-rate mortgages, allowing borrowers to qualify for larger loans. However, the risk of rising interest rates over time can make ARMs more expensive than fixed-rate mortgages in the long run. ARM loans are popular in the mortgage market, as they offer borrowers the flexibility to take advantage of lower interest rates when they are available. ARMs are also attractive to lenders, as they can offer higher interest rates than fixed-rate mortgages. Some companies in the Adjustable Rate Mortgage market include Bank of America, Wells Fargo, Quicken Loans, and US Bank. Show Less Read more