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- Top Question:
- What is an ARM loan?
- Best Answer:
ARM stands for Adjustable Rate Mortgage.
This type of loan is most commonly used by customers purchasing a home they only plan to be in for a short period of time. An ARM allows them to take advantage of a low interest rate for a pre-determined initial term. The interest rate adjusts periodically based on the index rate. Talk to a mortgage lender today to discuss if an ARM loan is right for you.
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