All Western Mortgage | Adjustable Rate Mortgage

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All Western Mortgage

• The Essentials of Adjustable Rate Mortgage

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• Most of the ARMs have an initial period of fixed
  rate where the interest and monthly payments
  remain the same and after the expiry of that
  fixed rate period, the interest rates begin to
  change at preset intervals. This can be monthly,
  yearly half-yearly or quarterly.

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• Advantages of ARMs
• The initial fixed rate period offers lower
  interest rate as compared to the Fixed-Rate
  Mortgages

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• Advantages of ARMs
• After the expiry of the initial fixed-rate
  period, the interest rate can fall even further,
  making the monthly payments even lower.

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• Disadvantages of ARMs
• The initial fixed rate period offers lower
  interest rate as compared to the Fixed-Rate
  Mortgages

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• Disadvantages of ARMs
• Interest rates and financial indexes are
  unpredictable. So, you never know how much youre
  going to pay as interest in the future.

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• Indexes and Margins
• After the expiry of the fixed rate period, the
  interest rates on ARMs begin to increase or
  decrease as per an index plus a set margin. Most
  of the ARMs are tied to one of the following
  three indexes

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• The maturity yield on one-year Treasury Bills
• The 11th District cost of funds index
• The London Interbank Offered Rate

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• Sky is Not the Limit! There are Caps on Interest
  Rates
• The fluctuations of interest rates dont mean
  that your monthly payments can skyrocket. There
  are certain caps on the interest rates that
  protect the interests of both the borrowers and
  the lenders. The types of caps levied on the
  Adjustable Rate Mortgage are

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• A periodic rate cap that governs how much the
  interest rate can change from one year to the
  next
• A lifetime cap that governs how much the rates
  can rise during the life of the loan
• A payment cap that limits the amount of monthly
  payments

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For more info on Adjustable Rate Mortgages, feel
free to call All Western Mortgage at 702-850-2790
or http//www.awmlending.com/loans-adjustable.php
to know more about our ARM plans.
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All Western Mortgage http//www.awmlending.com/
Address 8345 W Sunset Rd, Suite 380 Las
Vegas, NV  89113 Phone [phone] info_at_awmlen
ding.com