Translate this Site

Contact Information

Carolyn & Wayne Crowe
Maximum One Realty
3304 Mapleleaf Way
Powder Springs, Georgia, 30127
Office: 770-795-0303
Cell: 404-863-1719
Fax: 770-514-0080
cobbhomes@bellsouth.net
www.CobbHomesForSale.com
Lic. #: 203360
more about ARMs | Print |

Tell me more about ARMs?

Adjustable-rate mortgages "are tied to an index which is a measure of the lender's cost of borrowing money. As the index rises, so will the interest rate on the adjustable loan," according to Dian Hymer, author of "Buying and Selling a Home, A Complete Guide," Chronicle Books, San Francisco; 1994. v Common indexes include Treasury Securities (T- Bills), Certificates of Deposit (CDs), and Libor (London inter- bank offering rate). Most metropolitan newspapers publish current ARM index rates.

The interest rate and payment adjustments may or may not be scheduled to change at the same time. For example, the interest rate on some plans changes more frequently than the monthly payment, which may result in negative amortization. "This means that the additional interest will be added to the principal balance of the loan and may accrue additional interest itself," Hymer says. If the monthly payments on an ARM are increasing, generally this is because the index is rising or it is a negative amortization ARM.
People with adjustable-rate mortgages wanting to know how their payments are calculated might contact their lender or review the language in their loan agreement.


Questions about Kennesaw Real Estate?

Ask us below or Call us Now at 770-795-0303

Last Updated ( Tuesday, 29 July 2008 )
 
< Prev   Next >
[ Back ]

Syndicate this Site

Get the newest real estate Information from our site delivered right to your desktop!

Just Listed RSS Feed

See the newest properties as soon as we enter them in your favorite feed reader!

Don't worry about missing the right one... we make it easy for you!
RSS

Payment Estimator

Loan amount: $
Down payment: $
Annual interest rate: %
Term of loan: years
Total interest:
$
Monthly payment:
$
© 2010 Kennesaw Ga. Home For Sale   Real Estate Websites - Free Real Estate Advice - Real Estate Marketing