Tag Archives: mortgage

An Overview of Adjustable Rate Mortgages

FE_DA_0723Mortgage425x283To best serve its customers, AmeriSave makes a wide variety of different mortgage loan products available, including Adjustable Rate Mortgages (ARMs). An ARM ties interest rates to an economic index. As the index changes, the interest rates and payments will undergo periodic adjustment. Often, the initial rate will stay valid for a period of one, three, or five years and will then undergo adjustment on an annual basis. AmeriSave clearly outlines the stipulations of its ARMs to provide customers with all the tools necessary to make the best decision for their individual circumstances.

Many individuals choose an ARM despite the possibility of a rise in payment because initial rates often prove lower than those offered for fixed-rate loans. The decision depends heavily on how long an individual plans to stay in a home. If the borrowers will sell the home after only a few years, an ARM could save money.

AmeriSave clearly outlines the index that it will use to adjust the rates of an ARM, allowing potential borrowers to research the index’s performance in the past. Index becomes an extremely important factor in comparing two lenders. The other major factor, AmeriSave explains, is the margin, an interest rate that covers the lender’s underwriting costs and the profit made from the loan. The total interest rates represents the index added to the index rate.

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AmeriSave: An Introduction to Mortgage Refinancing

In addition to providing several top-quality home loan products for new homebuyers, leading retail mortgage lender AmeriSave frequently helps clients who wish to refinance their mortgages. For many people, mortgage refinance can significantly lower monthly payments and allow them to manage their finances more effectively. Ideal for individuals and families who wish to stay in their home for an extended time, mortgage refinancing can also help homeowners receive cash from their homes for educational expenses, home improvements, and other large expenditures.

Individuals often refinance their mortgages to consolidate their debt under one loan, which makes it much easier to manage. A mortgage can also consolidate debts such as credit card and auto loans, which typically feature high interest rates, under one low monthly rate. In addition to moving from a fixed-rate mortgage to an adjustable-rate mortgage, mortgage refinancing allows homeowners to repay their loans faster and eliminate private mortgage insurance.