Mortgage Brokers

ARM - Start Rate or Teaser Rate

A "teaser rate" or "start rate" are terms used to describe the ARM introductory rate for the initial fixed interest period.

ARM - Loan Margin

Loan Margin is the difference between the mortgage loan rate and its underlying index (on which the note rate is based).

ARM - When does the rate change?

ARMs have a specific length of time between interest rate adjustments. In times of falling interest rates, a shorter period benefits the borrower.

ARM - Caps

Interest rate caps -limitations on charges- are a common feature of adjustable rate mortgages. Caps typically apply to mortgages in three ways:

Appraisal Fees

Appraisal fees (also referred to sometimes as application fees) are loan dealer fees which are usually charged as flat rate fees as opposed to a percentage of the loan.