All Topics > Real Estate Resources > Financing > Adjustable Rate Mortgages > Adjustable Rate Mortgages (ARMs) >

Adjustable Rate Mortgages (ARMs) Florida

With an Adjustable Rate Mortgage (ARM), the interest rate changes periodically, usually in relation to an index, and payments may go up or down accordingly.

Local Companies

1st Metropolitan Mortgage
904-992-1000
4745 Sutton Park CT
Jacksonville, FL

1st Preference Mortgage
904-279-9292
10201 Centurion Pkwy N
Jacksonville, FL

American Mortgage Loan Co
813-636-9880
600 N West Shore Blvd
Tampa, FL

AESM Enterprises
1-866-577-5709
1161 6th ave s.w.
Largo, FL

Mortgage Banking
305-682-3870
19495 Biscayne Blvd.
Aventura, FL

Best Mortgage Available.com
(941) 227-4759
5521 38th Ave N.
St. petersburg, FL

The Promenade
305-374-5455
333 S. Miami Ave., Ste. 150
Miami, FL

Global Financial Funding Corp
954-668-2770
12555 Orange Drive
Davie, FL

CHUCK KABIS MRA, CMC
239-298-3090
1019 CROSSPOINT DR
NAPLES, FL

AMERICA ONE FINANCE
305.9718272
sw
MIAMI, FL

provided by:

With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an Adjustable Rate Mortgage (ARM), the interest rate changes periodically, usually in relation to an index, and payments may go up or down accordingly.

Adjustable Rate Mortgages

At-A-Glance

Pro	Con
Lower initial interest rates	Lower rate means you potentially assume more risk
If interest rates remain steady or decrease, could be less expensive over time	If interest rates increase, you’ll be faced with higher monthly payments in the future

TIP: Before deciding that an ARM is right for you, ask yourself these questions:

Is my income likely to rise enough to cover higher mortgage payments if interest rates go up?
Will I be taking on other sizable debts, such as a loan for a car or school tuition, in the near future?
How long do I plan to own this home? (If you plan to sell soon, rising interest rates may not pose the problem they do if you plan to own the house for a long time.)
Can my payments increase even if interest rates generally do not increase?

The Basic Features

The Adjustment Period: With most ARMs the adjustment period occurs every one, three or five years, resulting in a change in your interest rate and monthly payment.

The Index: Most lenders tie ARM interest rate changes to changes in an index rate. These indexes usually go up and down with the general movement of interest rates, making your monthly payment amount rise or fall accordingly.

The Margin: To determine the interest rate on an ARM, lenders add to the index rate a few percentage points called the margin. The amount of the margin can differ from one lender to another, but it is usually constant over the life of the loan.

This information is adapted from "Consumer Handbook on Adjustable Rate Mortgages" published by the Federal Reserve Board and the Office of Thrift Supervision.

Published on January 25, 2007

Read full article at realestate.com

Featured Local Company

1st Metropolitan Mortgage

904-992-1000
4745 Sutton Park CT
Jacksonville, FL

Read more about Adjustable Rate Mortgages (ARMs)

- New Freddie Mac® Rules Affect Borrowers Florida

The following contains housing information you should know about how the new Freddie Mac® rules affect borrowers. Read this review if you or a loved one is interested in buying and selling real estate.

- Great Market for Home Buyers Florida
- Step 7: Choosing the Right Mortgage Florida
- Shopping for Foreclosures Florida
- Finding the Right Home Loan Florida
- Pros and Cons of Fixed and Adjustable Rate Mortgages Florida
- End Mortgage Confusion: Top 10 Things to Ask Your Lender Florida
- Choosing an Investment Property Mortgage Florida
- Is Your ARM About to Reset? Florida
- Mortgage basics Florida

Regional Articles

- Shopping for Foreclosures Florida

With interest rates ticking up and ARMs adjusting upward, experts predict an increase in the number of foreclosure properties on the market.

- Is Your ARM About to Reset? Florida
- Great Market for Home Buyers Florida
- Step 7: Choosing the Right Mortgage Florida
- Choosing an Investment Property Mortgage Florida
- Pros and Cons of Fixed and Adjustable Rate Mortgages Florida
- End Mortgage Confusion: Top 10 Things to Ask Your Lender Florida
- Finding the Right Home Loan Florida
- Mortgage basics Florida
- New Freddie Mac® Rules Affect Borrowers Florida

Related Local Events

Start Planning for Sarasota International Congress
Dates: 9/24/2009 - 9/24/2009
Location: Hyatt Regency Sarasota
Sarasota, FL
View Details

US Real Estate Expo & Market (USRE Expo)
Dates: 7/31/2009 - 8/1/2009
Location: Sheraton Miami Mart Hotel
Miami, FL
View Details

US Real Estate & Wealth Expo
Dates: 7/31/2009 - 8/1/2009
Location: Miami Mart Airport Hotel & Convention Center
Miami, FL
View Details

Advertising	Food & Beverage	Nightlife
Business Services	Franchise	Online Database
Career	Health	Pets
Cars	Holidays	Real Estate Resources
Computer Hardware	Home Appliances	Retail & Consumer Services
Construction	Home Electronics	Software
Education	Home Services	Technology
Entertainment	Industrial Goods & Services	Telecommunications
Environmental	Insurance	Trade Shows
Family	Internet	Travel
Fashion	Legal	Weddings
Financial Services	Miscellaneous	World History

Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History