Mortgage Blog
Getting you the mortgage loan you deserve!
Adjustable Rate Mortgage
April 21, 2022 | Posted by: Jenny Ellul
What is an Adjustable Rate Mortgage?
An adjustable rate mortgage or ARM for short, is a type of mortgage loan that can be adjusted at pre-set intervals. An ARM is usually initially fixed for a set period of time, followed by periodic adjustments according to a specific benchmark.
How Adjustable Rate Mortgages Work
The initial rate and payment amount on an ARM will remain in effect for a limited period ranging from just 1 month to 5 years or more. With most ARMs, the interest rate and monthly payment change every month, quarter, year, 3 years, or 5 years. The period between rate changes is called the adjustment period. For example, a loan with an adjustment period of 1 year is called a 1 year ARM, and the interest rate and payment can change once every year.
Blog Categories
Download my Mortgage Planner App
This app allows you to review your communication about your loan, view the status of your transaction, and review uploaded documents and a list of those still needed.
