Home Loans - Facts About ARM Loans

Posted In: Mortgage Refinance
Adjustable rate mortgages gained popularity in the high interest loan market of the 1980's. With rates as high as 16% quoted for even those with high credit scores, obtaining a mortgage loan with affordable monthly payments became difficult. At that time, ARM's provided rates that began far below the market rates and home buyers planned to replace the adjustable with a fixed rate loan when the economy improved. In the past two years, terms for adjustable rate mortgages have not been as favorable for home buyers.