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Real Estate Insider: What goes down must go up – With this thought in mind, you may be thinking, if interest rates increase, how will that affect my ability to purchase a home? Yes, it’s a legitimate concern. fixed rate mortgages, the Adjustable.
Variable Rate Loans The Interest Rate In An adjustable rate mortgage Is Tied To An economic factor called The The Interest Rate In An Adjustable Rate Mortgage Is Tied To. – – In an adjustable rate mortgage, the interest rate is tied to an objective economic indicator called a(n) a. mortgage factor, b. discount rate, c. index, d. reserve requirement c. index In which type of loan is the loan amount divided into two parts, to be paid off separately by periodic interest payments followed by payment of the principal in.Understanding your options to borrow: Fixed-rate and variable-rate loans – When you borrow money, you may have a choice between a fixed-rate loan or a variable-rate loan. Read on to find out how to choose which one is right for you.Image source: Getty Images. When you borrow.The Interest Rate In An Adjustable Rate Mortgage Is Tied To An Economic Factor Called The Unit 14 & 15 Real Estate Financing:Principles Flashcards. – In an adjustable-rate mortgage, the interest rate is tied to an objective economic indicator called a(n) A) mortgage factor. B) discount rate. C) reserve requirement. D) index.
Also called a variable-rate mortgage, an adjustable-rate mortgage has an interest rate that may change periodically during the life of the loan in accordance with changes in an index such as the U.S. Prime Rate or the London interbank offered rate (libor). Bank of America ARMs use LIBOR as the basis for arm interest rate adjustments.
What may be a concern if you have an adjustable rate mortgage. – What may be a concern if you have an adjustable rate mortgage (ARM)? a. After the initial fixed rate period, your rate may increase. b. Your payment will constantly change during your initial fixed rate period. c. After the initial fixed rate period, your rate may decrease. d. A portion of your rate pays the commission of your mortgage broker.
Adjustable Rate Mortgage (ARM) – ForTheBestRate.com – It is very important to research adjustable rate mortgage information and weigh the pros and cons. Although you may save money by locking in on a lower rate initially, you have to weigh the risk of a potential hike in interest rates. It is a matter of individual risk tolerance. Typically, the shorter the fixed period of an arm, the lower the rate.
Bankrate.com provides FREE adjustable rate mortgage calculators and other ARM loan calculator tools to help consumers learn more about their mortgages.
What Is an Adjustable Rate Mortgage (ARM) and How Does It Work. – If you're a homebuyer with a tight budget, the ARM (adjustable rate mortgage) might look attractive at first thanks to that low (initial) interest rate. You know, kind .
Adjustable-Rate Mortgage – ARM: An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan.
Mortgages Pratice/Quiz Flashcards | Quizlet – What may be a concern if you have an adjustable rate mortgage (ARM)? a. After the initial fixed rate period, your rate may increase. b. Your payment will constantly change during your initial fixed rate period. c. After the initial fixed rate period, your rate may decrease. d. A portion of your rate pays the commission of your mortgage broker.