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Adjustable Rate Mortgages

Adjustable Rate Mortgages.  Compare Adjustable Rate Mortgages.  Adjustable Rate Mortgage Information & Advice. Find the Best Adjustable Rate Mortgages.  An adjustable rate mortgage, called an ARM for short, is a mortgage with an interest rate that is linked to an economic index. The interest rate, and your payments, are periodically adjusted up or down as the index changes.

Compared to fixed rate mortgages, Adjustable Rate Mortgages (ARMs) offer a lower interest rate to start, so your monthly payments are generally lower. But, the interest rate is adjusted at times, based on an "index". Some of the more common indices include United States Treasury Bills, California's 11th District Cost of Funds and the London Interbank Offered Rate (LIBOR).  Every lender then adds a set margin to that index. The result - Your payments could go up or down, depending on the economy and its resulting indicators.