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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Mortgage Home Loan Modification Programs When You Can't Afford Your Payments

Mortgage Home Loan Modification Programs When You Can't Afford Your Payments
You might think that if you can't afford your current mortgage payments that the first thing you should do is run to your lender and try to get a loan modification. But that may not be the right thing to do. You need to understand what your payments are on your loan before you can get a loan modification. If your payments have gone up because your insurance and real estate taxes have gone up, your lender may not be able to give you a loan modification. You might not even qualify for a loan modification under the Obama Home Affordable Modification Program or for any of the other loan modification plans.

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