Adjustable Rate Mortgage

Housing Term of the Day: “LIBOR ARM”

A “LIBOR ARM” sounds vaguely related to a frozen shoulder. It’s not. Pronounced “Lee′-bore,” it stands for the “London Inter-bank Offered Rate,” a widely used benchmark (or peg) for setting mortgage rates and other debt. Meanwhile, “ARM” stands for “Adjustable Rate Mortgage.” Definition, Please What does all that mean in practice? A homeowner with a...
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Non-Exploding ARM’s

Setting the Record Straight on ARM’s It’s easy to think that every adjustable rate mortgage (“ARM”) burned the borrowers who took them out. After all, aren’t so-called “Option ARM’s” supposed to be financial time bombs? They are, but most ARM’s don’t function that way (at least, the ones most common outside of Southern California, Arizona,...
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