Question:

What is the Consumer Handbook on Adjustable Rate Mortgages?

Answer:

The Consumer Handbook on Adjustable Rate Mortgages is published by the Federal Reserve Board to help borrowers better understand the most complex mortgage type - the ARMs.

The Consumer Handbook on Adjustable Rate Mortgages contains answers to common ARM questions such as

  • why do ARMs have so low interest rates;
  • how much can payment increase with an ARM after the adjustment;
  • why should I take an ARM;
  • what is an adjustable rate mortgage.

The Consumer Handbook on Adjustable Rate Mortgages will make clear what ARMs are and what features they have. All ARM components like index, margin, caps and adjustment will be explained. Different types of adjustable rate mortgages such as Neg Am, 5/1, 7/1 ARMs will be discussed, as well as when one could benefit with those ARMs.

ARM prepayment penalties and conversion opportunities will also be included in the Consumer Handbook on Adjustable Rate Mortgages.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
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Common misspellings: mortage and morgage