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Adjustable Rate Mortgage (ARM)

An adjustable rate mortgage generally features an initial interest rate that may be lower than that of a fixed-rate mortgage, which can result in lower initial payments to help offset the costs of a down payment, closing costs and other expenses. Then, the rate adjusts after a set period up to a certain limit.

Features

  • Payment of principal and interest adjusts based on a preselected index plus a margin with rate-cap adjustments
  • Maximum amount: $417,000

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