A variable-rate mortgage (also called an Adjustable Rate Mortgage, ARM) is a loan in which the interest rate paid on the outstanding balance varies according to a specific benchmark. Typically, the … [Read more...]
Why are more borrowers selecting adjustable-rate mortgages?
"Rapidly rising interest rates have been driving a growing number of home buyers to adjustable rate mortgages, which have grown from a 3.4% share of all conforming home loans in December 2013 to a … [Read more...]
Rising mortgage rates and falling affordability have spurred interest in ARMs
Orawin T. Velz, Director of Economic and Strategic Research with Fannie Mae, says "rising mortgage rates and falling affordability have spurred interest in ARMs." The reason for this shift is that … [Read more...]
