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Adjustable Rate Mortgages for Real Estate Investors

Adjustable rate mortgages for real estate investors

by William Bronchick, ESQ. An adjustable rate mortgage, commonly referred to as an ARM, is a mortgage where the interest rate on the mortgage changes periodically, on a schedule, according to an index. The most common indexes used to determine the interest rates are: One-year constant maturity treasury securities (CMT) Cost of Funds Index (COFI) London Interbank Offered Rate (LIBOR) …

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