This section is designed to help you understand banking terms. The most common ACH transactions are direct deposit, pre-authorized debits, cash concentration and corporate to corporate payments. The interest on an ARM may vary up or down at fixed intervals. The changes are tied to a financial index such as one-year Treasury Securities. The ARM often offers a lower beginning interest rate than fixed rate loans.
ARMs are of special interest to buyers who don t plan to own their home for many years.
Also, if current fixed interest rates are high, an ARM may be a good option. The appraiser visits the property and reviews recent selling prices of similar properties in the area. The buyer normally pays the appraisal fee at the time of application or at closing. A machine that allows the customer to perform some of the more common teller transactions, such as cash withdrawals, deposits and transfers. Cap - The highest interest rate your adjustable loan may be adjusted in any given period.