How an Adjustable Rate Mortgage (ARM) works

The borrowers interest rate is determined initially by the cost of money and the time the loan is made. Once the rate has been set, and it is tied to one of several widely recognized and published indexes , and future interest adjustments are based on the upward an downward movements of the index. An index is a statistical report that is generally reliable indicator of the approximate change in the cost of money. At the time a loan is... more...


The Real Estate Resource
Originally Posted on 6/11/2005 8:57:58 PM
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