ARMs are long term mortgages that have periodic interest rate adjustments.
Because ARMs are generally fully amortizing loans, the monthly payments adjust in tangent with the interest rate adjustment to assure that the loan will be paid in full at the end of the loan term. In essence, the principal balance of the loan increase rather than decreases. There are two kinds of ARMs which are designed for those wanting to improve their credit rating. Email 1.800.844.1015 Copyright East West Mortgage Company, All Rights Reserved.