From d1ec6b927d33fd7a20513b66df3462c7122020a3 Mon Sep 17 00:00:00 2001 From: gidgetwolinski Date: Mon, 16 Jun 2025 20:52:06 +0200 Subject: [PATCH] Add 'Adjustable Rate Mortgages Explained' --- Adjustable-Rate-Mortgages-Explained.md | 5 +++++ 1 file changed, 5 insertions(+) create mode 100644 Adjustable-Rate-Mortgages-Explained.md diff --git a/Adjustable-Rate-Mortgages-Explained.md b/Adjustable-Rate-Mortgages-Explained.md new file mode 100644 index 0000000..8b153d2 --- /dev/null +++ b/Adjustable-Rate-Mortgages-Explained.md @@ -0,0 +1,5 @@ +
An adjustable rate mortgage (ARM) is a flexible alternative to a conventional fixed-rate loan. While fixed rates remain the same for the life of the loan, ARM rates can change at scheduled intervals-typically beginning lower than repaired rates, which can be attracting certain homebuyers. In this article, we'll discuss how ARMs work, highlight their potential benefits, and assist you determine whether an ARM might be an excellent fit for your monetary [objectives](https://roostaustin.com) and timeline.
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What Is an Adjustable Rate Mortgage (ARM)?
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An adjustable rate home mortgage (ARM) is a home loan with a rates of interest that can change over time based upon market conditions. It starts with a fixed-rate duration, normally 3, 5, 7, or 10 years, followed by arranged rate modifications.
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The initial rate is often lower than a similar fixed-rate home loan, making ARM home mortgage rates [attractive](https://www.agentjill.com) to buyers who plan to move or re-finance before the adjustment period starts.
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After the fixed term, the rate adjusts-usually every six months or annually-based on a benchmark index plus a margin set by the lending institution. If rate of interest go down, your monthly payment might decrease \ No newline at end of file