Adjustable-Rate Mortgages. Adjustable-rate mortgages or ARMs have interest rates that adjust over a period of time. ARMs have had a notoriously bad reputation because of the mortgage meltdown and subsequent recession. While this reputation was justified in the past, most of those exotic ARMs no longer exist.

An adjustable rate mortgage is a mortgage loan with an interest rate that changes periodically over the life of the loan. Usually, a fixed interest rate is set on the loan for a limited period of time, after which the interest rate can adjust yearly or monthly depending on the chosen index.

The average fee for the 15-year mortgage was unchanged at 0.5 point. The average rate for five-year adjustable-rate mortgages fell to 3.38% from 3.49%. The fee remained at 0.4 point.

View Foxboro Federal Savings current adjustable rate mortgages here.

Adjustable rate mortgages are unique because the interest rate on the mortgage adjusts with interest rates in the marketplace. This is important because mortgage payment amounts are determined (in part) by the interest rate on the loan. As the interest rate rises, the monthly payment rises. Likewise, payments fall as interest rates fall.

3 Year Arm Mortgage Rates If, at the end of five years, your rate rises by more than 1 percentage point (from 3.2% to 4.25%), your monthly payment will simply match that of the 30-year fixed-rate mortgage.

Adjustable-Rate Mortgages The interest rate for an adjustable-rate mortgage is a variable one. The initial interest rate on an ARM is set below the market rate on a comparable fixed-rate loan, and.

The effective rate increased from last week. The average contract interest rate for 5/1 adjustable rate mortgages (ARMs) was 3.39 percent, down from 3.54 percent the prior week. Points were unchanged.

Subprime Mortgage Crisis Definition BREAKING DOWN ‘Subprime Mortgage’. "Subprime" is thought to refer to the interest rate attached to a mortgage. If a mortgage is considered subprime, people usually assume that it is denoting that the interest rate is high. However, subprime actually refers to the credit score of the individual taking out the mortgage.

Adjustable Rate Mortgages (ARM) Enjoy the comfort of your home with a 5-Year ARM! The Credit Union offers 5-Year Adjustable Rate Mortgage (ARM) products to purchase or refinance primary residences, second homes, and rental properties for members who reside in and for properties located in North Carolina, South Carolina, Virginia, Georgia and.

Adjustable-Rate Mortgages. An "adjustable-rate mortgage" is a loan program with a variable interest rate that can change throughout the life of the loan. It differs from a fixed-rate mortgage, as the rate may move both up or down depending on the direction of the index it is associated with.