Adjustable Rate Mortgages (ARMs) - Advantages and Disadvantages

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Adjustable Rate Mortgages (ARMs) - Advantages and Disadvantages
(presented by www.refinance-refinance.net - mortgage lenders)

By Adam VanBuskirk

An ARM is a mortgage that has an interest rate that adjusts periodically, often every six or 12 months. At these intervals, the interest rate is adjusted using an index and a margin. The index is a financial index that is used to gage general interest rate trends. Treasury Bills (T-Bills), Certificates of deposit (CDs), The 11th District Cost of Funds Index (COFI), and others are examples of financial indexes that are often used to determine interest rates. The margin is the markup that the lending institution places on their loans; put bluntly it

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