Luis Nieves Institute of Real Estate, Finance & Law
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Most of the borrowers don't have a clear idea as to what an adjustable rate mortgage loan is. Adjustable-rate mortgage (ARM) is a mortgage with an interest rate that periodically changes throughout the duration of the loan. The interest rates for ARMs are tied to an outside index, unlike fixed-rate mortgages. This means that the rates (and monthly payments) may rise or fall along with the index.
Luis Nieves Professor, Juris Doctor, GRI,SFR, REALTOR