Click on the button for
glossary of terms


  What is an ARM?  

Adjustable Rate Mortgage. This type of mortgage allows borrowers to pay a smaller monthly payment at the beginning of the loan. The interest rate on the loan will be adjusted periodically according to one of the major financial indexes. Some adjustable rate loans include a provision for the loan to be converted to a fixed-rate loan within a certain time frame.
   

Copyright © 2002-2007 Mission Hills Mortgage Bankers,
a division of Gateway Business Bank