Archive for 'Mortgages'
Weighing Your Home Mortgage Options: Adjustable Rate Mortgages
Posted on 30. Dec, 2009 by admin.
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An adjustable rate mortgage, or ARM, is a mortgage where the interest rate periodically adjusts according to an index. The most commonly used indexes are:
• Constant maturity treasury (CMT)
• Cost of Savings Index (COSI)
• Cost of Funds Index (COFI)
• London Interbank Offered Rate (LIBOR)
• Certificate of Deposit Index (CODI)
As the above indices increase and decrease according to economic activity, [...]