Which ARM is the Right One for You?
By Scott Staudt
Most borrowers now know that ARM stands for Adjustable Rate Mortgage, or a home loan that has an interest rate that adjust every certain period. As interest rates began skyrocketing in the seventies, banks decide to protect themselves against this risk by fixing interest rates more frequently.
This was not an issue until recent decades, since interest rates did not change as dramatically years ago.
Most ARMs are for thirty year mortgages, although shorter periods are available. But in the case of an ARM, it is the adjustment term of the interest rate national average mortgage rates that is of critical importance to a mortgage holder. national average mortgage rates