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.
Ilyce Glink on WSB Radio – December 24, 2008
Today on the Clark Howard Show, Ilyce Glink filled in. Ilyce talked mortgage rates, Christmas Miracles and had a chat with Santa. Also, there was a conversation about the cost and legal requirements for dental care. Sherri called the show to say that she tried to get her teeth cleaned, but was told she would also have to see the dentist and get x-rays, increasing the cost of her visit. Ilyce thinks it would be great to be able to pick the services you want or can afford right now. Another caller, Denise, an office manager in a dentist's office said there is a law that requires you to see a dentist if you're there for a cleaning. You can download the podcast here or at iTunes.com. For show notes and updates through the week, check out her blog at www.thinkglink.com/blog . Sign up for Ilyce's free weekly newsletter on the ThinkGlink.com home page. Check out the videos at www.expertrealestatetips.net. Subscribe to her YouTube channel: www.youtube.com/expertrealestatetips and friend her to be notified about new videos.
Expert Real Estate Tips: What Is A Stated Income Loan?
What is a stated income loan or no doc loan? Mortgage lenders require a property appraisal and good credit score among other items to qualify for a stated income loan. What are the benefits and who can qualify for this type of loan? Watch this Expert Real Estate Tips segment to learn more about what mortgage lenders require for a stated income loan.
How Credit Scores Impact Mortgage Applications
How do credit scores impact mortgage applications? Credit scores measure debt and your ability to pay back loans. Especially today, your credit score will determine your mortgage and interest rate. What credit score should you have and how can you improve your credit score and get the best interest rate for your mortgage? Watch this Expert Real Estate Tips segment for information on credit scores, mortgage applications, and how to improve your credit score and credit history.
Bailout Affects ARM Refinance
How has the recent credit crisis and bailout affected mortgage interest rates? To decide whether to refinance an adjustable rate mortgage into a fixed rate loan you need to understand which index your lender uses to set the ARM interest rate. ARMs are often tied to the London InterBank Offered Rate (LIBOR) or U.S. Treasury bills. These indexes may move in different directions and so you may want to refinance in one case but not the other. When you know which index affects your mortgage loan you will have a better idea of mortgage interest rates.
Mortgage Loan Rates Rise
Both the Mortgage Bankers Association (MBA) and Freddie Mac issued news that mortgage loan interest rates have gone up. For the week ending Oct. 10, ...
Refinance ARM And HELOC Into Fixed Rate Loan
Should you combine an adjustable rate mortgage (ARM) and a home equity line of credit (HELOC) into a 30 year fixed rate mortgage? If the interest rates are low enough should you refinance the ARM and HELOC into a fixed rate mortgage loan? You should look at the terms of your loan and compare that with market conditions such as the value of her home.
High Mortgage Loans Worry Home Owner
A home owner has taken out several mortgage loans but is unsure of her home's value. She worries the home value won't be enough to refinance or sell and pay off the mortgage loans. How can she determine an accurate home value?
Mortgage Applicants Choose Less Risky Loans
Perhaps homeowners are taking the advice of the mortgage industry and refinancing into more affordable loans. A light at the end of the tunnel if you ...
Choosing The Right Mortgage Loan
Learn about mortgage basics including two common types of mortgage loans and what it takes to qualify. Your credit score will have an impact on what kind of mortgage loan you can get. Being informed about your credit score and your options will help you get the right mortgage for you.