Arm Mortgage

An Adjustable-Rate Mortgage (ARM) is a type of loan whose prevailing interest rate is tied to an economic index (like one-year Treasury Bills), which fluctuates with the market. The three most popular types of ARMs are one-year ARMs, which adjust every year, three-year ARMs, which adjust every three years, and five-year ARMs, which adjust every five years. When the loan adjusts, the lender tacks a margin onto the economic index rate to come up with your loan's new rate. ARMs are considered riskier than fixed-rate mortgages, but their starting interest rates are generally lower than a longer-term rate. Learn more about ARMs and other mortgage options here.

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Refinancing Mortgage Only If You Reduce Your Monthly Payments, Term and Refinance Costs Are Low

Refinancing Mortgage Only If You Reduce Your Monthly Payments, Term and Refinance Costs Are Low
Refinancing a first mortgage and/or a second mortgage or home equity line of credit may not be right for everybody.
If you refinance the mortgages will you reduce the amount you owe on the mortgage loan?
Will you reduce the number of years left to pay on the mortgage once you refinance the mortgage and home equity line of credit or second mortgage loan?
If you refinance your mortgage, will the costs you incur by refinancing your mortgage exceed the savings you get? How long will it take for you to break even after you spend money refinancing your mortgages?

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