Everything you need to know about home loans in one place. Use our "frequently asked questions" section to learn everything about mortgages, refinancing, home equity lines of credit and more.
The 1-Year ARM, though rare, is yet another hybrid adjustable rate mortgage option available to borrowers. As the name suggests, a 1-Year ARM has an initial period of one year with a fixed interest rate. After the initial year, the fixed interest rate converts into an adjustable interest rate, that can be adjusted or “reset” on a yearly basis (annually).
Read MoreWhen you get an adjustable rate mortgage, the interest rate changes at set intervals in accordance with the market. In order to keep the rate from rising too high too fast, interest rate caps were introduced, to ensure the rate could only change at a manageable pace.
Read MoreA 5/6 ARM is a kind of hybrid adjustable-rate mortgage in which the fixed interest rate period of the mortgage lasts for 5 years. After the fixed-rate period is over, the variable-interest rate part of the mortgage begins.
Read MoreA 3/6 ARM is a type of hybrid adjustable rate mortgage in which the initial, fixed rate portion of the loan lasts 3 years, after which the adjustable-rate part of the mortgage begins.
Read MoreMuch like vanilla and chocolate ice cream, home mortgage loans come in two main flavors: adjustable rate home loans, and fixed rate home loans. While the interest rate on a fixed rate loan stays the same throughout the entire life of the loan, an adjustable (or variable) interest rate loan can go up or down, depending on market conditions.
Read MoreChoosing between a fixed rate and variable rate mortgage largely depends on your needs and plans for the future. Each has its own benefits and drawbacks, depending on your financial situation.
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