Adjustable-Rate Mortgage (ARM): what it is And Different Types (#1) · Issues · Micheline Wyselaskie / reswis

Adjustable-Rate Mortgage (ARM): what it is And Different Types

What Is an ARM?

How ARMs Work

Pros and Cons

Variable Rate on ARM

ARM vs. Fixed Interest

Adjustable-Rate Mortgage (ARM): What It Is and Different Types

What Is an Adjustable-Rate Mortgage (ARM)?

The term adjustable-rate mortgage (ARM) describes a mortgage with a variable rates of interest. With an ARM, the initial rate of interest is fixed for an amount of time. After that, the rate of interest used on the exceptional balance resets periodically, at annual and even regular monthly intervals.

ARMs are likewise called variable-rate mortgages or drifting mortgages. The interest rate for ARMs is reset based upon a standard or index, plus an additional spread called an ARM margin. The London Interbank Offered Rate (LIBOR) was the typical index utilized in ARMs till October 2020, when it was replaced by the Secured Overnight Financing Rate (SOFR) in an effort to increase long-lasting liquidity.

Homebuyers in the U.K. likewise have access to a variable-rate mortgage loan. These loans, called tracker mortgages, have a base benchmark rate of interest from the Bank of England or the European Reserve Bank.

- An adjustable-rate mortgage is a mortgage with a rates of interest that can change periodically based upon the performance of a specific criteria.
- ARMS are likewise called variable rate or drifting mortgages.
- ARMs typically have caps that restrict how much the rate of interest and/or payments can increase each year or over the lifetime of the loan.
- An ARM can be a smart financial choice for homebuyers who are preparing to keep the loan for a restricted amount of time and can manage any potential increases in their rates of interest.
Investopedia/ Dennis Madamba

How Adjustable-Rate Mortgages (ARMs) Work

Mortgages enable house owners to fund the purchase of a home or other piece of residential or commercial property. When you get a mortgage, you'll require to pay back the obtained sum over a set variety of years along with pay the lending institution something extra to compensate them for their difficulties and the probability that inflation will wear down the worth of the balance by the time the funds are reimbursed.

In many cases, you can choose the type of mortgage loan that best fits your needs. A fixed-rate mortgage includes a set rate of interest for the whole of the loan. As such, your payments remain the same. An ARM, where the rate changes based on market conditions. This implies that you take advantage of falling rates and likewise risk if rates increase.

There are two various periods to an ARM. One is the set period, and the other is the adjusted duration. Here's how the two vary:

Fixed Period: The rate of interest doesn't change during this period. It can range anywhere between the first 5, 7, or 10 years of the loan. This is frequently understood as the intro or teaser rate.
Adjusted Period: This is the point at which the rate modifications. Changes are made throughout this period based on the underlying standard, which changes based on market conditions.

Another crucial quality of ARMs is whether they are adhering or nonconforming loans. Conforming loans are those that satisfy the requirements of government-sponsored business (GSEs) like Fannie Mae and Freddie Mac. They are packaged and sold off on the secondary market to investors. Nonconforming loans, on the other hand, aren't approximately the requirements of these entities and aren't sold as financial investments.

Rates are topped on ARMs. This means that there are limitations on the greatest possible rate a debtor should pay. Keep in mind, however, that your credit history plays an important function in determining how much you'll pay. So, the much better your rating, the lower your rate.

Fast Fact

The initial loaning expenses of an ARM are fixed at a lower rate than what you 'd be used on a similar fixed-rate mortgage. But after that point, the rates of interest that impacts your monthly payments could move higher or lower, depending upon the state of the economy and the basic cost of loaning.

Types of ARMs

ARMs typically come in three forms: Hybrid, interest-only (IO), and payment option. Here's a fast breakdown of each.

Hybrid ARM

Hybrid ARMs provide a mix of a fixed- and adjustable-rate period. With this kind of loan, the rates of interest will be repaired at the beginning and then begin to drift at an established time.

This information is generally revealed in 2 numbers. In many cases, the first number suggests the length of time that the repaired rate is applied to the loan, while the 2nd describes the duration or change frequency of the variable rate.

For example, a 2/28 ARM features a set rate for 2 years followed by a drifting rate for the remaining 28 years. In comparison, a 5/1 ARM has a fixed rate for the very first 5 years, followed by a variable rate that adjusts every year (as indicated by the top after the slash). Likewise, a 5/5 ARM would begin with a fixed rate for 5 years and after that change every five years.

You can compare different kinds of ARMs utilizing a mortgage calculator.

Interest-Only (I-O) ARM

It's likewise possible to protect an interest-only (I-O) ARM, which basically would indicate only paying interest on the mortgage for a specific amount of time, normally three to 10 years. Once this duration expires, you are then needed to pay both interest and the principal on the loan.

These kinds of strategies interest those eager to invest less on their mortgage in the very first few years so that they can maximize funds for something else, such as buying furnishings for their new home. Of course, this benefit comes at a cost: The longer the I-O period, the higher your payments will be when it ends.

Payment-Option ARM

A payment-option ARM is, as the name suggests, an ARM with a number of payment options. These choices normally include payments covering principal and interest, paying down just the interest, or paying a minimum amount that does not even cover the interest.

Opting to pay the minimum amount or simply the interest might sound appealing. However, it deserves keeping in mind that you will need to pay the lender back everything by the date specified in the agreement and that interest charges are higher when the principal isn't getting paid off. If you persist with paying off little bit, then you'll discover your financial obligation keeps growing, perhaps to uncontrollable levels.

Advantages and Disadvantages of ARMs

Adjustable-rate mortgages come with many benefits and drawbacks. We have actually listed a few of the most common ones below.

Advantages

The most obvious advantage is that a low rate, specifically the intro or teaser rate, will conserve you money. Not just will your regular monthly payment be lower than most traditional fixed-rate mortgages, however you might likewise have the ability to put more down towards your primary balance. Just ensure your lender doesn't charge you a prepayment fee if you do.

ARMs are fantastic for people who wish to fund a short-term purchase, such as a starter home. Or you might want to borrow using an ARM to finance the purchase of a home that you mean to turn. This allows you to pay lower month-to-month payments until you choose to offer once again.

More money in your pocket with an ARM likewise indicates you have more in your pocket to put toward savings or other goals, such as a getaway or a brand-new car.

Unlike fixed-rate borrowers, you will not need to make a journey to the bank or your lending institution to refinance when rates of interest drop. That's since you're probably already getting the very best deal offered.

Disadvantages

Among the significant cons of ARMs is that the rate of interest will change. This means that if market conditions result in a rate walking, you'll wind up spending more on your monthly mortgage payment. Which can put a dent in your regular monthly budget plan.

ARMs may offer you versatility, however they don't offer you with any predictability as fixed-rate loans do. Borrowers with fixed-rate loans know what their payments will be throughout the life of the loan due to the fact that the rates of interest never ever changes. But since the rate modifications with ARMs, you'll need to keep juggling your spending plan with every rate change.

These mortgages can typically be really made complex to understand, even for the most seasoned debtor. There are various functions that come with these loans that you need to be aware of before you sign your mortgage contracts, such as caps, indexes, and margins.

Saves you money

Ideal for short-term borrowing

Lets you put money aside for other goals

No requirement to re-finance

Payments may increase due to rate walkings

Not as predictable as fixed-rate mortgages

Complicated

How the Variable Rate on ARMs Is Determined

At the end of the initial fixed-rate duration, ARM rate of interest will become variable (adjustable) and will change based on some reference rate of interest (the ARM index) plus a set amount of interest above that index rate (the ARM margin). The ARM index is frequently a benchmark rate such as the prime rate, the LIBOR, the Secured Overnight Financing Rate (SOFR), or the rate on short-term U.S. Treasuries.

Although the index rate can change, the margin remains the exact same. For example, if the index is 5% and the margin is 2%, the rate of interest on the mortgage gets used to 7%. However, if the index is at just 2%, the next time that the rate of interest changes, the rate is up to 4% based upon the loan's 2% margin.

Warning

The rates of interest on ARMs is determined by a varying standard rate that typically reflects the basic state of the economy and an extra set margin charged by the lender.

Adjustable-Rate Mortgage vs. Fixed-Interest Mortgage

Unlike ARMs, traditional or fixed-rate mortgages bring the very same rate of interest for the life of the loan, which may be 10, 20, 30, or more years. They generally have greater rate of interest at the start than ARMs, which can make ARMs more attractive and inexpensive, a minimum of in the brief term. However, fixed-rate loans offer the assurance that the customer's rate will never ever soar to a point where loan payments might become unmanageable.

With a fixed-rate mortgage, regular monthly payments remain the very same, although the quantities that go to pay interest or principal will alter over time, according to the loan's amortization schedule.

If rate of interest in basic fall, then property owners with fixed-rate mortgages can re-finance, paying off their old loan with one at a new, lower rate.

Lenders are needed to put in writing all terms and conditions relating to the ARM in which you're interested. That consists of info about the index and margin, how your rate will be determined and how often it can be altered, whether there are any caps in location, the optimum quantity that you might need to pay, and other crucial factors to consider, such as unfavorable amortization.

Is an ARM Right for You?

An ARM can be a wise monetary choice if you are planning to keep the loan for a restricted amount of time and will be able to handle any rate boosts in the meantime. In other words, a variable-rate mortgage is well fit for the following types of customers:

- People who plan to hold the loan for a brief time period
- Individuals who anticipate to see a favorable modification in their income
- Anyone who can and will settle the home loan within a brief time frame

In numerous cases, ARMs come with rate caps that limit how much the rate can rise at any provided time or in overall. Periodic rate caps limit just how much the interest rate can alter from one year to the next, while life time rate caps set limits on just how much the rate of interest can increase over the life of the loan.

Notably, some ARMs have payment caps that limit how much the regular monthly home mortgage payment can increase in dollar terms. That can lead to an issue called unfavorable amortization if your monthly payments aren't adequate to cover the rate of interest that your lending institution is altering. With negative amortization, the amount that you owe can continue to increase even as you make the needed regular monthly payments.

Why Is a Variable-rate Mortgage a Bad Idea?

Adjustable-rate home mortgages aren't for everyone. Yes, their beneficial introductory rates are appealing, and an ARM could help you to get a bigger loan for a home. However, it's difficult to spending plan when payments can change wildly, and you could end up in big financial problem if rate of interest surge, especially if there are no caps in place.

How Are ARMs Calculated?

Once the initial fixed-rate period ends, borrowing costs will vary based on a reference rate of interest, such as the prime rate, the London Interbank Offered Rate (LIBOR), the Secured Overnight Financing Rate (SOFR), or the rate on short-term U.S. Treasuries. On top of that, the lender will likewise add its own set quantity of interest to pay, which is known as the ARM margin.

When Were ARMs First Offered to Homebuyers?

ARMs have actually been around for a number of decades, with the alternative to secure a long-lasting house loan with varying rates of interest very first appearing to Americans in the early 1980s.

Previous attempts to introduce such loans in the 1970s were prevented by Congress due to worries that they would leave debtors with uncontrollable home loan payments. However, the deterioration of the thrift industry later that years prompted authorities to reconsider their initial resistance and end up being more versatile.

Borrowers have many options offered to them when they desire to fund the purchase of their home or another kind of residential or commercial property. You can choose in between a fixed-rate or adjustable-rate home mortgage. While the previous offers you with some predictability, ARMs provide lower rate of interest for a particular period before they begin to vary with market conditions.

There are different kinds of ARMs to select from, and they have benefits and drawbacks. But keep in mind that these sort of loans are much better fit for certain sort of customers, those who intend to hold onto a residential or commercial property for the short-term or if they plan to settle the loan before the adjusted period begins. If you're not sure, talk to a financial expert about your choices.

The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Page 15 (Page 18 of PDF).

The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 15-16 (Pages 18-19 of PDF).

The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 16-18 (Pages 19-21 of PDF).

BNC National Bank. "Commonly Used Indexes for ARMs."

Consumer Financial Protection Bureau. "For a Variable-rate Mortgage (ARM), What Are the Index and Margin, and How Do They Work?"

The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Page 7 (Page 10 of PDF).

The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 10-14 (Pages 13-17 of PDF).
github.com
The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 22-23 (Pages 25-26 of PDF).

Federal Reserve Bank of Boston. "A Call to ARMs: Adjustable-Rate Mortgages in the 1980s," Page 1 (download PDF).
google.com

What Is an ARM? 
 How ARMs Work 
 Pros and Cons 
 Variable Rate on ARM 
 ARM vs. Fixed Interest 
 
Adjustable-Rate Mortgage (ARM): What It Is and Different Types 
 What Is an [Adjustable-Rate](https://findspace.sg) Mortgage (ARM)? 
 The term adjustable-rate mortgage (ARM) describes a mortgage with a variable rates of interest. With an ARM, the initial rate of interest is fixed for an amount of time. After that, the rate of interest used on the exceptional balance resets periodically, at annual and even regular monthly intervals. 
 ARMs are likewise called variable-rate mortgages or drifting mortgages. The interest rate for ARMs is reset based upon a standard or index, plus an additional spread called an ARM margin. The London Interbank Offered Rate (LIBOR) was the typical index utilized in ARMs till October 2020, when it was replaced by the Secured Overnight Financing Rate (SOFR) in an effort to increase long-lasting liquidity. 
 Homebuyers in the U.K. likewise have access to a variable-rate mortgage loan. These loans, called tracker mortgages, have a base benchmark rate of interest from the Bank of England or the European Reserve Bank. 
 - An adjustable-rate mortgage is a mortgage with a rates of interest that can change periodically based upon the performance of a specific criteria.
 - ARMS are likewise called variable rate or drifting mortgages.
 - ARMs typically have caps that restrict how much the rate of interest and/or payments can increase each year or over the lifetime of the loan.
 - An ARM can be a smart financial choice for homebuyers who are preparing to keep the loan for a restricted amount of time and can manage any [potential increases](https://www.vendacasas24.com) in their rates of interest.
 
Investopedia/ Dennis Madamba 
 How Adjustable-Rate Mortgages (ARMs) Work 
 Mortgages [enable house](https://laculracilor.ro) owners to fund the purchase of a home or other piece of residential or commercial property. When you get a mortgage, you'll require to pay back the obtained sum over a set variety of years along with pay the lending institution something extra to compensate them for their difficulties and the probability that inflation will wear down the worth of the balance by the time the funds are reimbursed. 
 In many cases, you can choose the type of mortgage loan that best fits your needs. A fixed-rate mortgage includes a set rate of interest for the whole of the loan. As such, your payments remain the same. An ARM, where the rate changes based on market conditions. This implies that you take advantage of falling rates and likewise risk if rates increase. 
 There are two various periods to an ARM. One is the set period, and the other is the adjusted duration. Here's how the two vary: 
 Fixed Period: The rate of interest doesn't change during this period. It can range anywhere between the first 5, 7, or 10 years of the loan. This is frequently understood as the intro or teaser rate.
 Adjusted Period: This is the point at which the rate modifications. Changes are made throughout this period based on the underlying standard, which changes based on market conditions. 
 Another crucial [quality](https://trianglebnb.com) of ARMs is whether they are adhering or nonconforming loans. Conforming loans are those that satisfy the requirements of government-sponsored business (GSEs) like Fannie Mae and Freddie Mac. They are packaged and sold off on the secondary market to investors. Nonconforming loans, on the other hand, aren't approximately the requirements of these entities and aren't sold as financial investments. 
 Rates are topped on ARMs. This means that there are limitations on the greatest possible rate a debtor should pay. Keep in mind, however, that your credit history plays an important function in determining how much you'll pay. So, the much better your rating, the lower your rate. 
 Fast Fact 
 The initial loaning expenses of an ARM are fixed at a lower rate than what you 'd be used on a similar fixed-rate mortgage. But after that point, the rates of interest that impacts your monthly payments could move higher or lower, depending upon the state of the economy and the basic cost of loaning. 
 Types of ARMs 
 ARMs typically come in three forms: Hybrid, interest-only (IO), and payment option. Here's a fast breakdown of each. 
 Hybrid ARM 
 Hybrid ARMs provide a mix of a fixed- and adjustable-rate period. With this kind of loan, the rates of interest will be [repaired](https://preconcentral.com) at the beginning and then begin to drift at an established time. 
 This information is generally revealed in 2 numbers. In many cases, the first number suggests the length of time that the repaired rate is applied to the loan, while the 2nd describes the duration or change frequency of the variable rate. 
 For example, a 2/28 ARM features a set rate for 2 years followed by a drifting rate for the remaining 28 years. In comparison, a 5/1 ARM has a fixed rate for the very first 5 years, followed by a variable rate that adjusts every year (as indicated by the top after the slash). Likewise, a 5/5 ARM would begin with a fixed rate for 5 years and after that change every five years. 
 You can compare different kinds of ARMs utilizing a mortgage calculator. 
 Interest-Only (I-O) ARM 
 It's likewise possible to protect an interest-only (I-O) ARM, which basically would indicate only paying interest on the mortgage for a specific amount of time, normally three to 10 years. Once this [duration](https://leonisinmobiliaria.com) expires, you are then needed to pay both interest and the principal on the loan. 
 These kinds of strategies interest those eager to invest less on their mortgage in the very first few years so that they can [maximize funds](https://blue-shark.ae) for something else, such as buying furnishings for their new home. Of course, this benefit comes at a cost: The longer the I-O period, the higher your payments will be when it ends. 
 Payment-Option ARM 
 A payment-option ARM is, as the name suggests, an ARM with a number of payment options. These choices normally include payments covering principal and interest, paying down just the interest, or paying a minimum amount that does not even cover the interest. 
 Opting to pay the minimum amount or simply the interest might sound appealing. However, it deserves keeping in mind that you will need to pay the lender back everything by the date specified in the agreement and that interest charges are higher when the principal isn't getting paid off. If you persist with paying off little bit, then you'll discover your financial obligation keeps growing, perhaps to uncontrollable levels. 
 Advantages and Disadvantages of ARMs 
 Adjustable-rate mortgages come with many benefits and drawbacks. We have actually listed a few of the most common ones below. 
 Advantages 
 The most obvious advantage is that a low rate, specifically the intro or teaser rate, will conserve you money. Not just will your regular monthly payment be lower than most traditional fixed-rate mortgages, however you might likewise have the ability to put more down towards your primary balance. Just ensure your lender doesn't charge you a prepayment fee if you do. 
 ARMs are fantastic for people who wish to fund a short-term purchase, such as a starter home. Or you might want to borrow using an ARM to finance the purchase of a home that you mean to turn. This allows you to pay lower month-to-month payments until you choose to offer once again. 
 More money in your pocket with an ARM likewise indicates you have more in your pocket to put toward savings or other goals, such as a getaway or a brand-new car. 
 Unlike fixed-rate borrowers, you will not need to make a journey to the bank or your lending institution to refinance when rates of interest drop. That's since you're probably already getting the very best deal offered. 
 Disadvantages 
 Among the significant cons of ARMs is that the rate of interest will change. This means that if market conditions result in a rate walking, you'll wind up spending more on your monthly mortgage payment. Which can put a dent in your [regular monthly](https://theofferco.com) budget plan. 
 ARMs may offer you versatility, however they don't offer you with any predictability as fixed-rate loans do. Borrowers with fixed-rate loans know what their payments will be throughout the life of the loan due to the fact that the rates of interest never ever changes. But since the [rate modifications](https://stayandhomely.com) with ARMs, you'll need to keep juggling your spending plan with every rate change. 
 These mortgages can typically be really made complex to understand, even for the most seasoned debtor. There are various functions that come with these loans that you need to be aware of before you sign your mortgage contracts, such as caps, indexes, and margins. 
 Saves you money 
 Ideal for short-term borrowing 
 Lets you put money aside for other goals 
 No requirement to re-finance 
 Payments may increase due to rate walkings 
 Not as predictable as fixed-rate mortgages 
 Complicated 
 How the Variable Rate on ARMs Is Determined 
 At the end of the initial fixed-rate duration, ARM rate of interest will become variable (adjustable) and will change based on some reference rate of interest (the ARM index) plus a set amount of interest above that index rate (the ARM margin). The ARM index is frequently a benchmark rate such as the prime rate, the LIBOR, the Secured Overnight Financing Rate (SOFR), or the rate on short-term U.S. Treasuries. 
 Although the index rate can change, the margin remains the exact same. For example, if the index is 5% and the margin is 2%, the rate of interest on the mortgage gets used to 7%. However, if the index is at just 2%, the next time that the rate of interest changes, the rate is up to 4% based upon the loan's 2% margin. 
 Warning 
 The rates of interest on ARMs is determined by a varying standard rate that [typically reflects](https://salonrenter.com) the basic state of the economy and an extra set margin charged by the lender. 
 Adjustable-Rate Mortgage vs. Fixed-Interest Mortgage 
 Unlike ARMs, traditional or fixed-rate mortgages bring the very same rate of interest for the life of the loan, which may be 10, 20, 30, or more years. They generally have greater rate of interest at the start than ARMs, which can make ARMs more attractive and inexpensive, a minimum of in the brief term. However, fixed-rate loans offer the assurance that the [customer's rate](https://www.cacecyluxuryhomes.co.ke) will never ever soar to a point where loan payments might become unmanageable. 
 With a fixed-rate mortgage, regular monthly payments remain the very same, although the quantities that go to pay interest or [principal](https://thailandproperty.com) will alter over time, according to the loan's amortization schedule. 
 If rate of interest in basic fall, then property owners with fixed-rate mortgages can re-finance, paying off their old loan with one at a new, lower rate. 
 Lenders are needed to put in writing all terms and conditions relating to the ARM in which you're interested. That consists of info about the index and margin, how your rate will be determined and how often it can be altered, whether there are any caps in location, the optimum quantity that you might need to pay, and other crucial factors to consider, such as unfavorable amortization. 
 Is an ARM Right for You? 
 An ARM can be a wise monetary choice if you are planning to keep the loan for a restricted amount of time and will be able to handle any rate boosts in the meantime. In other words, a variable-rate mortgage is well fit for the following types of customers: 
 - People who plan to hold the loan for a brief time period
 - Individuals who anticipate to see a favorable modification in their income
 - Anyone who can and will settle the home loan within a brief time frame 
 In numerous cases, ARMs come with rate caps that limit how much the rate can rise at any provided time or in overall. Periodic rate caps limit just how much the interest rate can alter from one year to the next, while life time rate caps set limits on just how much the rate of interest can increase over the life of the loan. 
 Notably, some ARMs have payment caps that limit how much the regular monthly home mortgage payment can increase in dollar terms. That can lead to an issue called unfavorable amortization if your monthly payments aren't adequate to cover the rate of interest that your lending institution is altering. With negative amortization, the amount that you owe can continue to increase even as you make the needed regular monthly payments. 
 Why Is a Variable-rate Mortgage a Bad Idea? 
 Adjustable-rate home mortgages aren't for everyone. Yes, their beneficial [introductory rates](https://2c.immo) are appealing, and an ARM could help you to get a bigger loan for a home. However, it's difficult to spending plan when payments can change wildly, and you could end up in big financial problem if rate of interest surge, especially if there are no caps in place. 
 How Are ARMs Calculated? 
 Once the initial fixed-rate period ends, borrowing costs will vary based on a reference rate of interest, such as the prime rate, the London Interbank Offered Rate (LIBOR), the [Secured Overnight](https://whitestarre.com) Financing Rate (SOFR), or the rate on short-term U.S. Treasuries. On top of that, the lender will likewise add its own set quantity of interest to pay, which is known as the ARM margin. 
 When Were ARMs First Offered to Homebuyers? 
 ARMs have actually been around for a number of decades, with the alternative to secure a long-lasting house loan with varying rates of interest very first appearing to Americans in the early 1980s. 
 Previous attempts to introduce such loans in the 1970s were prevented by Congress due to worries that they would leave debtors with uncontrollable home loan payments. However, the deterioration of the thrift industry later that years prompted authorities to reconsider their initial resistance and end up being more versatile. 
 Borrowers have many options offered to them when they desire to fund the purchase of their home or another kind of residential or commercial property. You can choose in between a fixed-rate or adjustable-rate home mortgage. While the previous offers you with some predictability, ARMs provide lower rate of interest for a particular period before they begin to vary with market conditions. 
 There are different kinds of ARMs to select from, and they have benefits and drawbacks. But keep in mind that these sort of loans are much better fit for certain sort of customers, those who intend to hold onto a residential or commercial property for the short-term or if they plan to settle the loan before the adjusted period begins. If you're not sure, talk to a financial expert about your choices. 
 The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Page 15 (Page 18 of PDF). 
 The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 15-16 (Pages 18-19 of PDF). 
 The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 16-18 (Pages 19-21 of PDF). 
 BNC National Bank. "Commonly Used Indexes for ARMs." 
 Consumer Financial Protection Bureau. "For a Variable-rate Mortgage (ARM), What Are the Index and Margin, and How Do They Work?" 
 The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Page 7 (Page 10 of PDF). 
 The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 10-14 (Pages 13-17 of PDF). [github.com](https://github.com/gkiranseo/Tekslate/wiki)
 The Federal Reserve Board. "Consumer Handbook on Adjustable-Rate Mortgages," Pages 22-23 (Pages 25-26 of PDF). 
 Federal Reserve Bank of Boston. "A Call to ARMs: Adjustable-Rate Mortgages in the 1980s," Page 1 (download PDF). [google.com](https://sites.google.com/view/concept-creator/home)