ARM Adjustment Dates

The adjustable rate mortgage is a great way to get into a home when interest rates are low. When rates rise, however, it can lead to financial shock and even the loss of the home as we are seeing in many cases today. If you are considering an “ARM” for a property purchase, pay close attention to the adjustment dates in the loan agreement. These dates refer to the time during the year when lenders can adjust the rates up or down depending on how interest rates move. Some ARMs allow for this each month while others may allow as few as one adjustment a year. The fewer adjustments, generally speaking, the better off you are.