Types Of Loan Programs Fixed vs Adjustable

Different ARMs are tied to different financial indexes. Some indexes fluctuate up or down more quickly than others. To avoid constant and drastic changes, ARMs typically have change caps which regulate how much and how often the interest rate and/or payments can change in a year and over the life of the loan.

There are a number of variations that have been made available for adjustable rate mortgages, including hybrids that change from a fixed to an adjustable rate after a period of years.

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