Although adjustable-rate mortgages (ARMs) have recently been affecting many homeowners negatively, they’re still available.If you’re in the market for a house, you should know what they are and how they might affect you.
Unlike fixed-rate loans where the interest rate stays the same for the life of the loan, the interest rate on an ARM changes periodically, usually in relation to an index. As a result, your monthly mortgage payments may go up substantially, especially if you received a low introductory rate.
Find out more, including how ARMs work, issues borrowers may face, and ways to reduce risks with the Consumer Handbook On Adjustable Rate Mortgages. This informative publication from the Federal Reserve Board costs $1.00.
For your copy, send your name, address, and a check or money order for $1.00 to:
Federal Citizen Information Center
Dept. 349R
Pueblo, CO 81009
You can also call toll-free 1 (888) 8 PUEBLO, and ask for Item 349R.
Labels: FCIC, information, interest rates, mortgage programs
