Amortization Refers To Changes In The Monthly Payment For A Variable Rate Mortgage. A variable-rate mortgage, also commonly referred to as an adjustable-rate mortgage or a floating-rate mortgage, is a loan in which the rate of interest is subject to change. When such a change occurs,
The Gross Rent Multiplier (GRM) is another way to screen, value, and compare properties. Used mostly in the apartment industry, the GRM is much like the Capitalization Rate except that gross rental income is used rather than the net operating income (NOI) to determine the value or asking price of a property.
The term 5/1 arm means that you will get five years of a fixed interest rate, followed by one-year increments of adjustable rates. This means that for the first five years of the mortgage, you are going to have the same interest rate and the same monthly mortgage payment.
5 1 Arm Mortgage Means A 5 year ARM, also known as a 5/1 ARM, is a hybrid mortgage. A hybrid mortgage combines features from an adjustable rate mortgage (arm) and a fixed mortgage. It begins with a fixed rate for a specified number of years, but then changes to an ARM with the rate changing every year for the rest of the term of the loan.
What does LTV mean? Read on to find out! arm (adjustable-rate mortgage): No, not the body appendage. While fixed-rate mortgages have the same interest rate and monthly payment for the life of the loan, the interest rate and monthly payments on an ARM change (hence the word "adjustable").
Adjustable Interest Rate ARM Mortgage 3 Reasons to Use an Adjustable-Rate Mortgage – For the majority of homebuyers, a fixed-rate mortgage is a better option than an adjustable-rate mortgage, or ARM. However, there are some situations when the adjustable-rate option could make good.