A loan that first has a fixed interest rate followed by a fluctuating rate
Delayed adjustable rate mortgages (Delayed ARMs) have a fixed initial interest rate, then adjust, usually annually, for the life of the loan.
A 5/1 ARM is an example of a delayed ARM, since the interest rate stays the same for the first 5 years and then changes on the sixth year and every year after that.
A delayed ARM gives you the opportunity to enjoy fixed monthly payments for a longer period of time. Often people opt for this type of loan because they plan to sell their homes before the ARM starts to fluctuate. Delayed ARMs are also called intermediate ARMs
Mortgage definitions and Real Estate Terms, Consolidating loans, refinancing mortgages and reverse mortgage process available to anyone. This consumer information site contains several tools and guides to aid in purchasing or refinancing a home or commercial property.
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Sunday, April 16, 2006
