ARM Loans

(Adjustable Rate Mortgage) the interest rate for an adjustable rate mortgage will adjust at the completion of a specific time period. The interest rates are tied to specific indexes and are best for borrowers who know that they will not be in a home for a long period of time. Adjustable/ variable rate mortgages are usually fixed for three, five, seven or 10-year periods, but may start to adjust after that, in accordance to the index that it is tied to. The main advantage of an ARM is to get an initial lower interest, therefore reducing your monthly payment.