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.
You don’t Need The Census to Tell You You’re House Rich and Cash Poor
I guess it's official: The Census Bureau has weighed in and found that Americans are, by and large, spending a lot more money for their homes than bef...
Mortgage Interest Tax Deduction Depends On Whether You Itemize
When you're getting ready to buy a home you need to take your income into account and also whether you itemize your tax deductions. The majority of Americans do not itemize on their taxes and so they don't benefit from the mortgage interest tax deduction. Learn how the mortgage interest tax deduction works and who benefits most from this tax break.
Real Estate Minute: Have You Refinanced Your ARM Yet?
Real Estate Minute with Ilyce Glink Have You Refinanced Your ARM Yet? Original Air Date: September 25, 2006
NPR This Morning
I was interviewed on NPR this morning www.npr.org/templates/story/story.php?storyId=6123037 about what to do if you have an interest-only loan and wan...
Mortgage Interest Rates Reflect Loan Risk
Studies have shown that consumers pay too much for their mortgages. Learn how mortgages are priced and why some borrowers get mortgage loans with higher interest rates than others. Mortgage loan interest rates take the riskiness of the loan into account.
Catching Up From Last Week
My friend, Jon Lansner, is a business columnist at the Orange County Register. He's been blogging about exotic mortgages lately - -by exotic I mean ei...
Finding Profit In Real Estate
A homeowner is wondering if now is a good time to take his profit out of the townhome and buy a single family home. While property has appreciated dramatically over the years in some markets, we've seen the residential real estate market soften quite a bit in some areas. Now might be a good time to evaluate options and find out where profit can be found in real estate.
Life Is Pricey With Plastic And Credit
In several metro areas last year (notably southern California, northern California, south Florida, the east coast and, strangely, Salt Lake City), mor...
Are you working on Monday, July 3rd?
A survey of 100 human resource executives revealed that July 3rd is just another day in the calendar. Only 25 percent of companies plan to give their ...
Selecting An Adjustable Rate Mortgage
A 10-year ARM typically carries an interest rate that is fixed for the first 10 years. Compared with a 30-year mortgage, a 10-year ARM's interest rate will be slightly lower. These days the difference in the interest rate between the two loan types is very small.