Tag Archives: ARMS

ARMs, or adjustable rate mortgages (mortgages that do not have a fixed rate), can be scary, but if you stay within your time line, it can save borrowers a lot of money when rates are on the rise. The most popular adjustable rate mortgages are the 5/1 ARM with 5/2/5 Caps, Margin 2.25, and the 7/1 ARM with 5/2/5 caps, Margin 2.25. What his means is that the payment will be spread over 30 years but the rate will be fixed for the first 5 or 7 years. Once the fixed time frame is over, the mortgage will adjust annually …