Adjustable Rate Mortgages:ARM’s Can Be A Pain In The Neck

Adjustable rate mortgages,or “ARM’s” are loans in which the interest rate changes periodically according to the terms of the loan program Compared to a fixed-rate mortgage,there is usually a lower interest rate to start,but the interest rate is adjusted at periodic times,usually based upon an “index” The most common indices are the US Treasury Bills,California's 11 th District Cost of Funds (COFI),and the London Interbank Offered Rate (LIBOR)...