June 1, 2015 | 0 Comments. The G4 Experience: A Special Q & A with George C. Fraser and Veronica Conway Join us today Monday 11/3 for a special conference call.
What is an 'Adjustable-Rate Mortgage - ARM'. An adjustable-rate mortgage is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan. Normally, the initial interest rate is fixed for a period of time, after which it resets periodically, often every year or even monthly.
An independent, third party index is used in every adjustable rate mortgage. All adjustable rate mortgages (ARMs) have indexes used in calculating future interest rate changes. An index is the base rate from which your new interest rate is built at each adjustment period. Ideally, you want an index that is stable, widely available for verifying, and simple to understand.