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Adjustable-Rate Mortgage (ARM): What It Is and Different Types
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🏡 𝗪𝗵𝗮𝘁 𝗶𝘀 𝗮𝗻 𝗔𝗥𝗠? An adjustable-rate mortgage is a type of loan for which the interest rate can change, usually in relation to an index interest rate. 🤔 𝗦𝗼, 𝗵𝗼𝘄 𝗱𝗼𝗲𝘀 𝗶𝘁 𝘄𝗼𝗿𝗸? For an initial period of time, you’ll have a lower monthly payment, and your interest rate will be locked. After the initial period, your interest rate may go up or down based on market trends. This will cause your overall monthly payment to change, making it important to keep a close eye on your
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