Adjustable-Rate Mortgage (ARM): what it is And Different Types (#1) · Issues · Phillis Camarena / myassetpoint

Adjustable-Rate Mortgage (ARM): what it is And Different Types

What Is an ARM?
nove.team
How ARMs Work

Advantages and disadvantages

Variable Rate on ARM

ARM vs. Fixed Interest

Adjustable-Rate Mortgage (ARM): What It Is and Different Types

What Is an Adjustable-Rate Mortgage (ARM)?

The term adjustable-rate mortgage (ARM) describes a mortgage with a variable rates of interest. With an ARM, the initial rates of interest is repaired for a time period. After that, the rates of interest used on the exceptional balance resets occasionally, at annual and even month-to-month intervals.

ARMs are also called variable-rate mortgages or drifting mortgages. The rate of interest for ARMs is reset based upon a criteria or index, plus an extra spread called an ARM margin. The London Interbank Offered Rate (LIBOR) was the common index used in ARMs till October 2020, when it was changed by the Secured Overnight Financing Rate (SOFR) in an effort to increase long-term liquidity.

Homebuyers in the U.K. also have access to a variable-rate mortgage loan. These loans, called tracker mortgages, have a base benchmark interest rate from the Bank of England or the European Central Bank.

- An adjustable-rate mortgage is a mortgage with a rates of interest that can change occasionally based upon the performance of a particular criteria.
- ARMS are also called variable rate or floating mortgages.
- ARMs typically have caps that limit how much the rates of interest and/or payments can rise annually or over the lifetime of the loan.
- An ARM can be a smart monetary choice for homebuyers who are planning to keep the loan for a restricted time period and can afford any possible increases in their rates of interest.
Investopedia/ Dennis Madamba

How Adjustable-Rate Mortgages (ARMs) Work

Mortgages allow homeowners to finance the purchase of a home or other piece of residential or commercial property. When you get a mortgage, you'll need to pay back the borrowed sum over a set number of years as well as pay the lending institution something additional to compensate them for their troubles and the possibility that inflation will deteriorate the value of the balance by the time the funds are repaid.

In a lot of cases, you can choose the type of mortgage loan that best suits your requirements. A fixed-rate mortgage includes a set rates of interest for the entirety of the loan. As such, your payments remain the same. An ARM, where the rate varies based on market conditions. This implies that you benefit from falling rates and also risk if rates increase.

There are 2 different periods to an ARM. One is the fixed period, and the other is the adjusted period. Here's how the 2 vary:

Fixed Period: The rates of interest doesn't alter throughout this period. It can vary anywhere in between the very first 5, 7, or 10 years of the loan. This is typically referred to as the intro or teaser rate.
Adjusted Period: This is the point at which the rate changes. Changes are made during this duration based upon the underlying standard, which varies based on market conditions.

Another essential quality of ARMs is whether they are adhering or nonconforming loans. Conforming loans are those that meet the standards of government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. They are packaged and offered off on the secondary market to financiers. Nonconforming loans, on the other hand, aren't as much as the standards of these entities and aren't sold as financial investments.

Rates are capped on ARMs. This means that there are limitations on the highest possible rate a debtor should pay. Keep in mind, though, that your credit rating plays a crucial role in figuring out how much you'll pay. So, the much better your rating, the lower your rate.

Fast Fact

The initial loaning costs of an ARM are fixed at a lower rate than what you 'd be offered on a similar fixed-rate mortgage. But after that point, the interest rate that impacts your regular monthly payments might move greater or lower, depending upon the state of the economy and the general cost of borrowing.

Kinds of ARMs

ARMs usually can be found in 3 forms: Hybrid, interest-only (IO), and payment choice. Here's a quick breakdown of each.

Hybrid ARM

Hybrid ARMs use a mix of a fixed- and adjustable-rate duration. With this kind of loan, the interest rate will be repaired at the beginning and after that begin to float at an established time.

This info is generally revealed in 2 numbers. For the most part, the first number suggests the length of time that the fixed rate is used to the loan, while the second describes the duration or modification frequency of the variable rate.

For example, a 2/28 ARM includes a fixed rate for 2 years followed by a drifting rate for the remaining 28 years. In contrast, a 5/1 ARM has a fixed rate for the first five years, followed by a variable rate that adjusts every year (as shown by the number one after the slash). Likewise, a 5/5 ARM would begin with a for 5 years and after that adjust every five years.

You can compare different types of ARMs utilizing a mortgage calculator.

Interest-Only (I-O) ARM

It's likewise possible to secure an interest-only (I-O) ARM, which essentially would imply only paying interest on the mortgage for a specific time frame, typically 3 to ten years. Once this duration expires, you are then needed to pay both interest and the principal on the loan.

These types of plans appeal to those eager to spend less on their mortgage in the very first few years so that they can maximize funds for something else, such as purchasing furnishings for their new home. Obviously, this benefit comes at a cost: The longer the I-O period, the greater your payments will be when it ends.

Payment-Option ARM

A payment-option ARM is, as the name implies, an ARM with numerous payment options. These choices normally consist of payments covering principal and interest, paying for simply the interest, or paying a minimum quantity that does not even cover the interest.

Opting to pay the minimum amount or just the interest may sound attractive. However, it deserves bearing in mind that you will have to pay the loan provider back everything by the date specified in the contract which interest charges are higher when the principal isn't earning money off. If you continue with paying off little, then you'll find your financial obligation keeps growing, maybe to uncontrollable levels.

Advantages and Disadvantages of ARMs

Adjustable-rate mortgages come with numerous advantages and disadvantages. We've noted a few of the most common ones listed below.

Advantages

The most obvious advantage is that a low rate, specifically the intro or teaser rate, will conserve you money. Not just will your month-to-month payment be lower than most conventional fixed-rate mortgages, but you might likewise have the ability to put more down toward your primary balance. Just guarantee your loan provider doesn't charge you a prepayment charge if you do.

ARMs are excellent for people who wish to fund a short-term purchase, such as a starter home. Or you might want to obtain using an ARM to finance the purchase of a home that you plan to turn. This permits you to pay lower month-to-month payments until you decide to sell again.

More cash in your pocket with an ARM also indicates you have more in your pocket to put towards savings or other objectives, such as a vacation or a brand-new vehicle.

Unlike fixed-rate borrowers, you won't need to make a journey to the bank or your lending institution to re-finance when rate of interest drop. That's due to the fact that you're probably already getting the very best deal offered.

Disadvantages

Among the major cons of ARMs is that the rates of interest will change. This indicates that if market conditions lead to a rate walking, you'll wind up spending more on your monthly mortgage payment. Which can put a dent in your monthly budget.

ARMs may use you versatility, however they do not offer you with any predictability as fixed-rate loans do. Borrowers with fixed-rate loans know what their payments will be throughout the life of the loan due to the fact that the interest rate never alters. But due to the fact that the rate changes with ARMs, you'll have to keep handling your budget plan with every rate modification.

These mortgages can often be really complicated to comprehend, even for the most skilled debtor. There are various functions that include these loans that you must be aware of before you sign your mortgage contracts, such as caps, indexes, and margins.

Saves you cash

Ideal for short-term loaning

Lets you put cash aside for other goals

No requirement to re-finance

Payments might increase due to rate walkings

Not as predictable as fixed-rate mortgages

Complicated

How the Variable Rate on ARMs Is Determined

At the end of the preliminary fixed-rate period, ARM rate of interest will end up being variable (adjustable) and will fluctuate based on some referral rate of interest (the ARM index) plus a set amount of interest above that index rate (the ARM margin). The ARM index is frequently a benchmark rate such as the prime rate, the LIBOR, the Secured Overnight Financing Rate (SOFR), or the rate on short-term U.S. Treasuries.

Although the index rate can alter, the margin remains the very same. For example, if the index is 5% and the margin is 2%, the interest rate on the mortgage changes to 7%. However, if the index is at just 2%, the next time that the interest rate adjusts, the rate falls to 4% based on the loan's 2% margin.

Warning

The rate of interest on ARMs is figured out by a changing criteria rate that generally reflects the general state of the economy and an additional set margin charged by the lending institution.

Adjustable-Rate Mortgage vs. Fixed-Interest Mortgage

Unlike ARMs, conventional or fixed-rate mortgages carry the exact same rates of interest for the life of the loan, which might be 10, 20, 30, or more years. They usually have higher interest rates at the outset than ARMs, which can make ARMs more appealing and inexpensive, at least in the short-term. However, fixed-rate loans supply the assurance that the customer's rate will never soar to a point where loan payments may become unmanageable.

With a fixed-rate home mortgage, regular monthly payments stay the same, although the quantities that go to pay interest or principal will change with time, according to the loan's amortization schedule.

If rates of interest in basic fall, then property owners with fixed-rate mortgages can refinance, settling their old loan with one at a new, lower rate.

Lenders are needed to put in composing all terms associating with the ARM in which you're interested. That consists of info about the index and margin, how your rate will be calculated and how often it can be changed, whether there are any caps in place, the optimum quantity that you might need to pay, and other essential considerations, such as negative amortization.

Is an ARM Right for You?

An ARM can be a wise financial option if you are preparing to keep the loan for a restricted amount of time and will have the ability to manage any rate increases in the meantime. Simply put, a variable-rate mortgage is well matched for the list below types of debtors:

- People who mean to hold the loan for a short amount of time
- Individuals who expect to see a favorable modification in their earnings
- Anyone who can and will settle the home mortgage within a short time frame

In lots of cases, ARMs include rate caps that limit how much the rate can increase at any given time or in overall. Periodic rate caps restrict how much the interest rate can alter from one year to the next, while lifetime rate caps set limitations on how much the interest rate can increase over the life of the loan.

Notably, some ARMs have payment caps that restrict how much the regular monthly mortgage payment can increase in dollar terms. That can result in a problem called unfavorable amortization if your regular monthly payments aren't adequate to cover the rates of interest that your lending institution is changing. With unfavorable amortization, the amount that you owe can continue to increase even as you make the required month-to-month payments.

Why Is a Variable-rate Mortgage a Bad Idea?

Variable-rate mortgages aren't for everybody. Yes, their beneficial initial rates are appealing, and an ARM might help you to get a larger loan for a home. However, it's tough to budget when payments can change wildly, and you could end up in huge monetary difficulty if interest rates spike, especially if there are no caps in place.

How Are ARMs Calculated?

Once the preliminary fixed-rate duration ends, obtaining expenses will fluctuate based upon a recommendation rate of interest, such as the prime rate, the London Interbank Offered Rate (LIBOR), the Secured Overnight Financing Rate (SOFR), or the rate on short-term U.S. Treasuries. On top of that, the lender will also include its own set amount of interest to pay, which is called the ARM margin.

When Were ARMs First Offered to Homebuyers?

ARMs have been around for several decades, with the option to take out a long-lasting house loan with changing interest rates first ending up being available to Americans in the early 1980s.

Previous attempts to present such loans in the 1970s were warded off by Congress due to fears that they would leave debtors with uncontrollable home loan payments. However, the wear and tear of the thrift market later that decade triggered authorities to reassess their preliminary resistance and end up being more versatile.

Borrowers have numerous alternatives available to them when they desire to finance the purchase of their home or another type of residential or commercial property. You can choose in between a fixed-rate or variable-rate mortgage. While the former provides you with some predictability, ARMs use lower rate of interest for a specific duration before they begin to vary with market conditions.

There are different types of ARMs to select from, and they have benefits and drawbacks. But bear in mind that these kinds of loans are better fit for certain kinds of debtors, consisting of those who plan to keep a residential or commercial property for the short term or if they mean to settle the loan before the adjusted period starts. If you're uncertain, speak with an economist about your options.

The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Page 15 (Page 18 of PDF).

The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 15-16 (Pages 18-19 of PDF).

The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 16-18 (Pages 19-21 of PDF).

BNC National Bank. "Commonly Used Indexes for ARMs."

Consumer Financial Protection Bureau. "For an Adjustable-Rate Mortgage (ARM), What Are the Index and Margin, and How Do They Work?"

The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Page 7 (Page 10 of PDF).

The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 10-14 (Pages 13-17 of PDF).

The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 22-23 (Pages 25-26 of PDF).

Federal Reserve Bank of Boston. "A Call to ARMs: Adjustable-Rate Mortgages in the 1980s," Page 1 (download PDF).
nove.team

What Is an ARM? [nove.team](https://git.nove.team/peekr)
 How ARMs Work 
 Advantages and disadvantages 
 Variable Rate on ARM 
 ARM vs. Fixed Interest 
 
Adjustable-Rate Mortgage (ARM): What It Is and Different Types 
 What Is an Adjustable-Rate Mortgage (ARM)? 
 The term adjustable-rate mortgage (ARM) describes a mortgage with a variable rates of interest. With an ARM, the initial rates of interest is repaired for a time period. After that, the rates of interest used on the exceptional balance resets occasionally, at annual and even month-to-month intervals. 
 ARMs are also called [variable-rate mortgages](https://cyprus101.com) or drifting mortgages. The rate of interest for ARMs is reset based upon a criteria or index, plus an extra spread called an ARM margin. The London Interbank Offered Rate (LIBOR) was the common index used in ARMs till October 2020, when it was changed by the Secured Overnight Financing Rate (SOFR) in an effort to increase long-term liquidity. 
 Homebuyers in the U.K. also have access to a variable-rate mortgage loan. These loans, called tracker mortgages, have a base benchmark interest rate from the Bank of England or the European Central Bank. 
 - An adjustable-rate mortgage is a [mortgage](https://elitehostels.co.ke) with a rates of interest that can change occasionally based upon the performance of a particular criteria.
 - ARMS are also called variable rate or floating mortgages.
 - ARMs typically have caps that limit how much the rates of interest and/or payments can rise annually or over the lifetime of the loan.
 - An ARM can be a smart monetary choice for [homebuyers](https://www.grandemlak.com) who are planning to keep the loan for a restricted time period and can afford any possible increases in their rates of interest.
 
Investopedia/ Dennis Madamba 
 How Adjustable-Rate Mortgages (ARMs) Work 
 Mortgages allow homeowners to finance the purchase of a home or other piece of residential or commercial property. When you get a mortgage, you'll need to pay back the [borrowed](https://ezestate.net) sum over a set number of years as well as pay the lending institution something additional to compensate them for their troubles and the possibility that inflation will deteriorate the value of the balance by the time the funds are repaid. 
 In a lot of cases, you can choose the type of mortgage loan that best suits your requirements. A [fixed-rate mortgage](https://www.qbrpropertylimited.com) includes a set rates of interest for the entirety of the loan. As such, your payments remain the same. An ARM, where the rate varies based on market conditions. This implies that you benefit from falling rates and also risk if rates increase. 
 There are 2 different periods to an ARM. One is the fixed period, and the other is the adjusted period. Here's how the 2 vary: 
 Fixed Period: The rates of interest doesn't alter throughout this period. It can vary anywhere in between the very first 5, 7, or 10 years of the loan. This is typically referred to as the intro or teaser rate.
 [Adjusted](https://asbrealty.com.au) Period: This is the point at which the rate changes. Changes are made during this duration based upon the underlying standard, which varies based on market conditions. 
 Another essential quality of ARMs is whether they are adhering or nonconforming loans. Conforming loans are those that meet the standards of government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. They are packaged and offered off on the secondary market to financiers. Nonconforming loans, on the other hand, aren't as much as the standards of these entities and aren't sold as financial investments. 
 Rates are capped on ARMs. This means that there are limitations on the highest possible rate a debtor should pay. Keep in mind, though, that your credit rating plays a crucial role in [figuring](https://www.vibhaconsultancy.com) out how much you'll pay. So, the much better your rating, the lower your rate. 
 Fast Fact 
 The initial loaning costs of an ARM are fixed at a lower rate than what you 'd be offered on a similar fixed-rate mortgage. But after that point, the interest rate that impacts your regular monthly payments might move greater or lower, depending upon the state of the economy and the general cost of borrowing. 
 Kinds of ARMs 
 ARMs usually can be found in 3 forms: Hybrid, interest-only (IO), and payment choice. Here's a quick breakdown of each. 
 Hybrid ARM 
 Hybrid ARMs use a mix of a fixed- and adjustable-rate duration. With this kind of loan, the interest rate will be repaired at the beginning and after that begin to float at an established time. 
 This info is generally revealed in 2 numbers. For the most part, the first number suggests the length of time that the fixed rate is used to the loan, while the second describes the duration or modification frequency of the variable rate. 
 For example, a 2/28 ARM includes a fixed rate for 2 years followed by a drifting rate for the remaining 28 years. In contrast, a 5/1 ARM has a fixed rate for the first five years, followed by a variable rate that adjusts every year (as shown by the number one after the slash). Likewise, a 5/5 ARM would begin with a for 5 years and after that adjust every five years. 
 You can compare different types of ARMs utilizing a mortgage calculator. 
 Interest-Only (I-O) ARM 
 It's likewise possible to secure an interest-only (I-O) ARM, which essentially would imply only paying interest on the mortgage for a specific time frame, typically 3 to ten years. Once this duration expires, you are then needed to pay both interest and the principal on the loan. 
 These types of plans appeal to those eager to spend less on their mortgage in the very first few years so that they can maximize funds for something else, such as purchasing furnishings for their new home. Obviously, this benefit comes at a cost: The longer the I-O period, the greater your payments will be when it ends. 
 Payment-Option ARM 
 A payment-option ARM is, as the name implies, an ARM with numerous payment options. These choices normally consist of payments covering principal and interest, paying for simply the interest, or paying a minimum quantity that does not even cover the interest. 
 Opting to pay the minimum amount or just the interest may sound attractive. However, it deserves bearing in mind that you will have to pay the loan provider back everything by the date specified in the contract which interest charges are higher when the principal isn't earning money off. If you continue with paying off little, then you'll find your financial obligation keeps growing, maybe to uncontrollable levels. 
 Advantages and Disadvantages of ARMs 
 Adjustable-rate mortgages come with numerous advantages and disadvantages. We've noted a few of the most common ones listed below. 
 Advantages 
 The most obvious advantage is that a low rate, specifically the intro or teaser rate, will conserve you money. Not just will your month-to-month payment be lower than most conventional fixed-rate mortgages, but you might likewise have the ability to put more down toward your primary balance. Just guarantee your loan provider doesn't charge you a prepayment charge if you do. 
 ARMs are excellent for people who wish to fund a short-term purchase, such as a starter home. Or you might want to obtain using an ARM to finance the purchase of a home that you plan to turn. This permits you to pay lower month-to-month payments until you decide to sell again. 
 More cash in your pocket with an ARM also indicates you have more in your pocket to put towards savings or other objectives, such as a vacation or a brand-new vehicle. 
 Unlike fixed-rate borrowers, you won't need to make a journey to the bank or your lending institution to re-finance when rate of interest drop. That's due to the fact that you're probably already getting the very best deal offered. 
 Disadvantages 
 Among the major cons of ARMs is that the rates of interest will change. This indicates that if market conditions lead to a rate walking, you'll wind up spending more on your monthly mortgage [payment](https://michigancountryrealestate.com). Which can put a dent in your monthly budget. 
 ARMs may use you versatility, however they do not offer you with any predictability as fixed-rate loans do. Borrowers with fixed-rate loans know what their payments will be throughout the life of the loan due to the fact that the interest rate never alters. But due to the fact that the rate changes with ARMs, you'll have to keep handling your budget plan with every rate modification. 
 These mortgages can often be really complicated to comprehend, even for the most skilled debtor. There are various functions that include these loans that you must be aware of before you sign your mortgage contracts, such as caps, indexes, and margins. 
 Saves you cash 
 Ideal for short-term loaning 
 Lets you put cash aside for other goals 
 No requirement to re-finance 
 Payments might increase due to rate walkings 
 Not as predictable as fixed-rate mortgages 
 Complicated 
 How the Variable Rate on ARMs Is Determined 
 At the end of the preliminary fixed-rate period, ARM rate of interest will end up being variable (adjustable) and will fluctuate based on some referral rate of interest (the ARM index) plus a set amount of interest above that index rate (the ARM margin). The ARM index is frequently a benchmark rate such as the prime rate, the LIBOR, the Secured Overnight Financing Rate (SOFR), or the rate on short-term U.S. Treasuries. 
 Although the index rate can alter, the margin remains the very same. For example, if the index is 5% and the margin is 2%, the interest rate on the mortgage changes to 7%. However, if the index is at just 2%, the next time that the interest rate adjusts, the rate falls to 4% based on the loan's 2% margin. 
 Warning 
 The rate of interest on ARMs is figured out by a changing criteria rate that generally reflects the general state of the economy and an additional set margin charged by the lending institution. 
 Adjustable-Rate Mortgage vs. Fixed-Interest Mortgage 
 Unlike ARMs, conventional or fixed-rate mortgages carry the exact same rates of interest for the life of the loan, which might be 10, 20, 30, or more years. They usually have higher interest rates at the outset than ARMs, which can make ARMs more appealing and inexpensive, at least in the short-term. However, fixed-rate loans supply the assurance that the customer's rate will never soar to a point where loan payments may become unmanageable. 
 With a fixed-rate home mortgage, regular monthly payments stay the same, although the quantities that go to pay interest or principal will change with time, according to the loan's amortization schedule. 
 If rates of interest in basic fall, then property owners with fixed-rate mortgages can refinance, settling their old loan with one at a new, lower rate. 
 Lenders are needed to put in composing all terms associating with the ARM in which you're interested. That consists of info about the index and margin, how your rate will be calculated and how often it can be changed, whether there are any caps in place, the optimum quantity that you might need to pay, and other essential considerations, such as negative amortization. 
 Is an ARM Right for You? 
 An ARM can be a wise financial option if you are preparing to keep the loan for a restricted amount of time and will have the ability to manage any rate increases in the meantime. Simply put, a variable-rate mortgage is well matched for the list below types of debtors: 
 - People who mean to hold the loan for a short amount of time
 - Individuals who expect to see a favorable modification in their earnings
 - Anyone who can and will settle the home mortgage within a short time frame 
 In lots of cases, ARMs include rate caps that limit how much the rate can increase at any given time or in overall. Periodic rate caps restrict how much the interest rate can alter from one year to the next, while lifetime rate caps set limitations on how much the interest rate can increase over the life of the loan. 
 Notably, some ARMs have payment caps that restrict how much the regular monthly mortgage payment can increase in dollar terms. That can result in a problem called unfavorable amortization if your regular monthly payments aren't adequate to cover the rates of interest that your lending institution is changing. With [unfavorable](https://casaduartelagos.com) amortization, the amount that you owe can continue to increase even as you make the required month-to-month payments. 
 Why Is a Variable-rate Mortgage a Bad Idea? 
 Variable-rate mortgages aren't for everybody. Yes, their beneficial initial rates are appealing, and an ARM might help you to get a larger loan for a home. However, it's tough to budget when payments can change wildly, and you could end up in huge monetary difficulty if interest rates spike, especially if there are no caps in place. 
 How Are ARMs Calculated? 
 Once the preliminary fixed-rate duration ends, obtaining expenses will fluctuate based upon a recommendation rate of interest, such as the prime rate, the London Interbank Offered Rate (LIBOR), the Secured Overnight Financing Rate (SOFR), or the rate on short-term U.S. Treasuries. On top of that, the lender will also include its own set amount of interest to pay, which is called the ARM margin. 
 When Were ARMs First Offered to Homebuyers? 
 ARMs have been around for several decades, with the option to take out a long-lasting house loan with changing interest rates first ending up being available to Americans in the early 1980s. 
 Previous attempts to present such loans in the 1970s were warded off by Congress due to fears that they would [leave debtors](https://libhomes.com) with uncontrollable home loan payments. However, the wear and tear of the thrift market later that decade triggered authorities to reassess their preliminary resistance and end up being more versatile. 
 Borrowers have numerous alternatives available to them when they desire to finance the purchase of their home or another type of residential or commercial property. You can choose in between a fixed-rate or variable-rate mortgage. While the former provides you with some predictability, ARMs use lower rate of interest for a specific duration before they begin to vary with market conditions. 
 There are different types of ARMs to select from, and they have benefits and drawbacks. But bear in mind that these kinds of loans are better fit for certain kinds of debtors, consisting of those who plan to keep a residential or commercial property for the [short term](https://areafada.com) or if they mean to settle the loan before the adjusted period starts. If you're uncertain, speak with an [economist](https://lewisandcorealty.ca) about your options. 
 The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Page 15 (Page 18 of PDF). 
 The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 15-16 (Pages 18-19 of PDF). 
 The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 16-18 (Pages 19-21 of PDF). 
 BNC National Bank. "Commonly Used Indexes for ARMs." 
 Consumer Financial Protection Bureau. "For an Adjustable-Rate Mortgage (ARM), What Are the Index and Margin, and How Do They Work?" 
 The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Page 7 (Page 10 of PDF). 
 The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 10-14 (Pages 13-17 of PDF). 
 The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 22-23 (Pages 25-26 of PDF). 
 Federal Reserve Bank of Boston. "A Call to ARMs: Adjustable-Rate Mortgages in the 1980s," Page 1 (download PDF). [nove.team](https://git.nove.team/peekr/frontend)