ARM Loans are adjustable Mortgage Rate loans. Understanding the facts of an ARM loan will have you prepared when you begin taking with a lending company. Some of the facts include:
- frequency of the interest rate change
- Periodic change in the interest rate.
- Interest rate change in over the life of the loan. This can be called a life cap.
- You can pay the minimum payment
- You can pay interest only payment
- You can pay a 15-30 year rate payment.
This is a loan that is mainly fixed on different interest rates and gives you different ways of paying.