When an ARM (adjustable rate mortgage) adjusts, does only the interest rate change, or is the balance re-amortized for the remaining period?

When an ARM (adjustable rate mortgage) adjusts, does only the interest rate change, or is the balance re-amortized for the remaining period?
by

1 Answer

Answer :

ARMs reamortize out to the original length of the contract on the adjustment date. If you make extra principal payments the monthly payments will be reduced to maintain the same maturity date. I knocked over $100 off my monthly payment in the first five years of my mortgage by making extra payments.
by

Related questions

Do you know how much your house mortgage will cost you over time? Do you care?

Description : Do you know how much your house mortgage will cost you over time? Do you care?

Last Answer : That’s one way to look at it. Or you can look at it like my nephew. “Why should I rent and make someone else rich.” Plus it’s still deductible if you can itemize.

Should I be concerned and am I "upside down" in my mortgage?

Description : Should I be concerned and am I "upside down" in my mortgage?

Last Answer : $79k for a house?!? Wow. Well, you purchased this in 1999. How much do you currently owe on it? (Is this in the U.S.? Are you missing a “2” before that “7”?)

What happens if you make your final mortgage payment but the primary borrower on the mortgage is deceased?

Description : What happens if you make your final mortgage payment but the primary borrower on the mortgage is deceased?

Last Answer : It is not a matter of who is on the note, it is who is on the deed. This would probably change according to state laws. The house might have needed to go into probate upon the holder of the deed’s death. In some states it just automatically goes to the spouse (in the absence of a will.)

Mortgage payment as a percentage of gross income?

Description : Mortgage payment as a percentage of gross income?

Last Answer : The 28% is simply a guideline that should include PITI (principal, interest, taxes & insurance), but in some cases- you can exceed that 28% with excellent credit. It can also be affected when you take into ... To Value ratio). It's a great time to buy if it's feasible for you. Good luck!

Can I get mortgage?

Description : Can I get mortgage?

Last Answer : Where do you live?

Is there a minimum amount of time between mortgage refinancing?

Description : Is there a minimum amount of time between mortgage refinancing?

Last Answer : you should be able to refinance at anytime. Banks don't mind because they collect the fees. Unless your financing has it in your agreement, you should be fine. Ask them about no points/no closing ... don't offer that, you can always shop other companies will wave those fees to get your business.

What do you guys think about an Adjustable Mortgage Rate (ARM)?

Description : What do you guys think about an Adjustable Mortgage Rate (ARM)?

Last Answer : Be very careful and know inside and out the terms of your ARM. I know people who had loans they thought they could refinance only to learn all they had to do was be late on one payment and their refinance option was voided.

Do some poor people, who were, perhaps, raised in poverty, not understand what it takes to live fairly comfortably?

Description : Do some poor people, who were, perhaps, raised in poverty, not understand what it takes to live fairly comfortably?

Last Answer : It sounds like she wanted to guilt you into renting to her at a price that she could afford, not taking into consideration it was a house she could not afford. You have to make your mortgage payment and most ... and make up the difference that a renter can't pay. I would not have felt bad at all.

At what age do you see yourself totally out of debt?

Description : At what age do you see yourself totally out of debt?

Last Answer : Want to join us for a mortgage burning party?

Why is the US government going to bail out Freddie Mac and Fannie Mae?

Description : Why is the US government going to bail out Freddie Mac and Fannie Mae?

Last Answer : answer:Because it is Barney Frank's pet project, and he controls the committee that oversees Fanny and Freddie. Also he gets lots of campaign contributions from the Board of Directors. Personally I think ... will hurt some people short term, but in the long run it will make the economy stronger.

Could I short sale my house and have wife purchase new home under her name?

Description : Could I short sale my house and have wife purchase new home under her name?

Last Answer : answer:If your wife is not on your current loan and can afford to, independent of your finances,qualify for and purchase another home that you quit claim any interest to then it's possible she could buy a ... be easy and will be a pay now/pay later scenario. Better to stick with the devil you know.

My property is upside down, and co-signer owes child support. Will they place a lien against him?

Description : My property is upside down, and co-signer owes child support. Will they place a lien against him?

Last Answer : How is your property upside down? What do you mean?

What does APR mean on credit card statements?

Description : What does APR mean on credit card statements?

Last Answer : APR is the cost of credit that consumers pay, expressed as a simple annual percentage.

How do I get refinanced with broken credit?

Description : How do I get refinanced with broken credit?

Last Answer : You may want to try Prosper peer-to-peer lending. Loans may be available to people who are not eligible for bank loans.

Is an Adjustable Rate Mortgage really as bad as I have been led to believe?

Description : Is an Adjustable Rate Mortgage really as bad as I have been led to believe?

Last Answer : If you can pay off your loan in 5 years it’s a smoking deal – otherwise unless you refinance into a 30-year fixed later you’d get screwed over.

Which exchange-rate mechanism is intended to insulate the balance of payments from short-term capital movements while providing exchange rate stability for commercial transactions? A. Dual Exchange Rates B. Managed Floating Exchange Rates C. Adjustable Pegged Exchange Rates D. Crawling Pegged Exchange Rates

Description : Which exchange-rate mechanism is intended to insulate the balance of payments from short-term capital movements while providing exchange rate stability for commercial transactions? A. Dual ... Floating Exchange Rates C. Adjustable Pegged Exchange Rates D. Crawling Pegged Exchange Rates

Last Answer : A. Dual Exchange Rates

How do I know if the calculations of my (adjustable) mortgage payments have been correctly made through the years?

Description : How do I know if the calculations of my (adjustable) mortgage payments have been correctly made through the years?

Last Answer : Make an appointment with the company that services your mortgage and demand a complete accounting.

When is the best time to readjust arm adjustable rates?

Description : When is the best time to readjust arm adjustable rates?

Last Answer : The rates on an arm adjustable rate change every three years, depending on the specific type you have. The best time to reevaluate would be directly following one of those adjustment periods.

Option ARM vs. Fixed Rate Mortgage?

Description : Option ARM vs. Fixed Rate Mortgage?

Last Answer : Option ARM vs. Fixed Rate MortgageA fixed rate mortgage has the same payment for the entire termof the loan. The Option ARM uses a low initial rate to calculateyour initial minimum monthly ... much lower monthlypayment than a traditional fixed rate mortgage, or even anadjustable rate mortgage (ARM).

ARM vs. Fixed Rate Mortgage?

Description : ARM vs. Fixed Rate Mortgage?

Last Answer : ARM vs. Fixed Rate MortgageA fixed rate mortgage has the same payment for the entire termof the loan. An adjustable rate mortgage (ARM) has a rate that canchange, causing your monthly payment to increase ... a fixed rate mortgage to two types ofARMs, a Fully Amortizing ARM and an Interest Only ARM.

Fischer’s ‘lock and key’ model of the enzyme action implies that (A) The active site is complementary in shape to that of substance only after interaction. (B) The active site is complementary in shape to that of substance (C) Substrates change conformation prior to active site interaction (D) The active site is flexible and adjusts to substrate

Description : Fischer's lock and key' model of the enzyme action implies that (A) The active site is complementary in shape to that of substance only after interaction. (B) The active site is ... change conformation prior to active site interaction (D) The active site is flexible and adjusts to substrate

Last Answer : Answer : B

Would today be a good time to lock into an interest rate on my home mortgage? I am getting out of an interest only, variable loan and need to know if now is the time to pull the trigger?

Description : Would today be a good time to lock into an interest rate on my home mortgage? I am getting out of an interest only, variable loan and need to know if now is the time to pull the trigger?

Last Answer : From what I understand, Feds cutting interest rates dosen’t do much for mortgage rates. I was going to refinance but it just wasn’t worth it.

Fixed Rate Mortgage vs. Interest Only Mortgage?

Description : Fixed Rate Mortgage vs. Interest Only Mortgage?

Last Answer : Fixed Rate Mortgage vs. Interest Only MortgageA fixed rate mortgage has the same payment for the entire termof the loan. Use this calculator to compare a fixed rate mortgageto Interest Only Mortgage.

The objectives of mental health in education can be achieved, if the following principles are observed in the curriculum. (a) The child's need, interest and experiences individual differences in learning on pacity should form the central factor. (b) It should be dynamic and possible of revision so that it may be in harmony with changing social conditions. (c) It should be flexible and adjustable to the needs of pupils at every stage (d) All of the above.

Description : The objectives of mental health in education can be achieved, if the following principles are observed in the curriculum. (a) The child's need, interest and experiences individual differences in learning on ... flexible and adjustable to the needs of pupils at every stage (d) All of the above.

Last Answer : d) All of the above.

‘Lock’ and ‘Key’ model of enzyme action proposed by Fisher implies that (A) The active site is flexible and adjusts to substrate (B) The active site requires removal of PO4 group (C) The active site is complementary in shape to that of the substrate (D) Substrates change conformation prior to active site interaction

Description : Lock' and Key' model of enzyme action proposed by Fisher implies that (A) The active site is flexible and adjusts to substrate (B) The active site requires removal of PO4 group ( ... complementary in shape to that of the substrate (D) Substrates change conformation prior to active site interaction

Last Answer : Answer : C

When to lock in mortgage interest rate?

Description : When to lock in mortgage interest rate?

Last Answer : answer:Lock it in as soon as the fed indicates that it will start to raise interest rates. I suggest you wait the lenders lower their rates in phases. A little after the Fed lowers then start to ... before they reach the lowest rate. This is my opinion based on what I have seen occur since 1994.

What is Interest rate on mortgage?

Description : What is Interest rate on mortgage?

Last Answer : It will depend on the lender and the risk of default.

From the information given below, calculate Debt service coverage Ratio– Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6,000, Debenture Redemption Fund Appropriation of Outstanding Debentures 10%. (A) 4•06 times (B) 5•06 times (C) 6•06 times (D) 7•06 times

Description : From the information given below, calculate Debt service coverage Ratio- Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6 ... . (A) 4 06 times (B) 5 06 times (C) 6 06 times (D) 7 06 times

Last Answer : Answer: 4•06 times

If an inductance is connected in one arm of bridge and resistances in the remaining three arms?

Last Answer : If an inductance is connected in one arm of bridge and resistances in the remaining three arms the bridge cannot be balanced.

What makes mortgage interest rates change?

Description : What makes mortgage interest rates change?

Last Answer : Many factors determine mortgage interest rates. Most of it will depend on the economy and the glut or scarcity of houses that are available.

Can I re consolidate my student loans now that the interest rate is lower?

Description : Can I re consolidate my student loans now that the interest rate is lower?

Last Answer : It would be advisable. Speak to a specialist broker.

APR Calculator for Adjustable Rate Mortgages?

Description : APR Calculator for Adjustable Rate Mortgages?

Last Answer : APR Calculator for Adjustable Rate MortgagesUse this calculator to determine the Annual Percentage Rate(APR) of your Adjustable Rate Mortgage (ARM). Knowing your APR canhelp you compare different ARMs with different fees and terms.

Which exchange-rate system involves a “leaning against the wind” strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run? A. Pegged or fixed exchange rates B. Adjustable pegged exchange rates C. Managed floating exchange rates D. Freely floating exchange rates

Description : Which exchange-rate system involves a leaning against the wind strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the ... pegged exchange rates C. Managed floating exchange rates D. Freely floating exchange rates

Last Answer : C. Managed floating exchange rates

Under the historic adjustable pegged exchange-rate system, member countries were permitted to correct persistent and sizable payment deficits (i.e., fundamental disequilibrium) by: A. Officially revaluing their currencies B. Officially devaluing their currencies C. Allowing their currencies to depreciate in the free market D. Allowing their currencies to appreciate in the free market

Description : Under the historic adjustable pegged exchange-rate system, member countries were permitted to correct persistent and sizable payment deficits (i.e., fundamental disequilibrium) by: A. Officially ... depreciate in the free market D. Allowing their currencies to appreciate in the free market

Last Answer : B. Officially devaluing their currencies

During the 1970s, the European Union, in its quest for monetary union, adopted what came to be referred to as the “Community Snake” This device was a (an): A. Adjustable pegged exchange rate system B. Dual exchange rate system C. Jointly floating exchange rate system D. Freely floating exchange rate system

Description : During the 1970s, the European Union, in its quest for monetary union, adopted what came to be referred to as the Community Snake This device was a (an): A. Adjustable pegged ... Dual exchange rate system C. Jointly floating exchange rate system D. Freely floating exchange rate system

Last Answer : C. Jointly floating exchange rate system

hich exchange-rate system involves a “leaning against the wind” strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run? A. Pegged or fixed exchange rates B. Adjustable pegged exchange rates C. Managed floating exchange rates D. Freely floating exchange rates

Description : hich exchange-rate system involves a leaning against the wind strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over ... Adjustable pegged exchange rates C. Managed floating exchange rates D. Freely floating exchange rates

Last Answer : C. Managed floating exchange rates

Under the historic adjustable pegged exchange-rate system, member countries were permitted to correct persistent and sizable payment deficits (i.e., fundamental disequilibrium) by: A. Officially revaluing their currencies B. Officially devaluing their currencies C. Allowing their currencies to depreciate in the free market D. Allowing their currencies to appreciate in the free market

Description : Under the historic adjustable pegged exchange-rate system, member countries were permitted to correct persistent and sizable payment deficits (i.e., fundamental disequilibrium) by: A. Officially ... depreciate in the free market D. Allowing their currencies to appreciate in the free market

Last Answer : B. Officially devaluing their currencies

Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners: A. U.S. exports tend to rise and imports tend to fall B. U.S. imports tend to rise and exports tend to fall C. U.S. foreign exchange reserves tend to rise D. U.S. foreign exchange reserves remain constant

Description : Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners: A. U.S. exports tend to rise and imports tend to fall ... C. U.S. foreign exchange reserves tend to rise D. U.S. foreign exchange reserves remain constant

Last Answer : B. U.S. imports tend to rise and exports tend to fall

Which exchange-rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium? A. Dual Exchange rates B. Adjustable Pegged Exchange Rates C. Managed Floating Exchange Rates D. Crawling Pegged Exchange Rate

Description : Which exchange-rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium? A. Dual Exchange rates B. Adjustable Pegged Exchange Rates C. Managed Floating Exchange Rates D. Crawling Pegged Exchange Rate

Last Answer : D. Crawling Pegged Exchange Rate

The Exchange-rate System that best characteristizes the present international monetary arrangement used by industrialized countries is: A. Freely Fluctuating Exchange Rates B. Adjustable Pegged Echange Rates C. Managed Floating Exchange Rates D. Pegged or Fixed Exchange Rates

Description : The Exchange-rate System that best characteristizes the present international monetary arrangement used by industrialized countries is: A. Freely Fluctuating Exchange Rates B. Adjustable Pegged Echange Rates C. Managed Floating Exchange Rates D. Pegged or Fixed Exchange Rates

Last Answer : C. Managed Floating Exchange Rates

Do we have an app that adjusts the reading comprehension level in a book?

Description : Do we have an app that adjusts the reading comprehension level in a book?

Last Answer : There is something called the Fry Readability Level that can tell you what reading level a book is on but nothing I know of that would change the vocabulary of a book already written. That doesn't really ... Fry score is usually used with children's books and might show up in a review of the book.

How should I behave around my cat as it adjusts to a new puppy?

Description : How should I behave around my cat as it adjusts to a new puppy?

Last Answer : From what I've heard, pets tend to adapt to situations better if their humans aren't fretting and nervous, so I would suggest that you try to behave normally around her, petting her as often ... getting all the attention he usually got. She then paid more attention to him and everything was alright.

Is there a digital watch that adjusts for time zones?

Description : Is there a digital watch that adjusts for time zones?

Last Answer : There is no digital watch that adjusts to time zone.

The _____________ sensor senses the temperature of the engine coolant, and from this data the computer adjusts the mixture strength to rich side for cold starting. a) engine temperature b) exhaust gas c) air flow d) air inlet temperature

Description : The _____________ sensor senses the temperature of the engine coolant, and from this data the computer adjusts the mixture strength to rich side for cold starting. a) engine temperature b) exhaust gas c) air flow d) air inlet temperature

Last Answer : Answer: a Explanation: The engine temperature sensor senses the temperature of the engine coolant, and from this data the computer adjusts the mixture strength to rich side for cold starting while the ... gas senor senses the amount of oxygen in the engine exhaust and calculates air-fuel ratio.

Regarding an induction motor, the power developed by the rotor automatically adjusts itself to the _____________. A. power required to drive the load B. speed required to drive the load C. current flow in the motor stator D. torque developed by the rotating field

Description : Regarding an induction motor, the power developed by the rotor automatically adjusts itself to the _____________. A. power required to drive the load B. speed required to drive the load C. current flow in the motor stator D. torque developed by the rotating field

Last Answer : Answer: A

After actual locations for main storage are known, a __ adjusts relative addresses to these actual locations: a. Relocating loader b. Locating loader c. Default loader d. None of these

Description : After actual locations for main storage are known, a __ adjusts relative addresses to these actual locations: a. Relocating loader b. Locating loader c. Default loader d. None of these

Last Answer : a. Relocating loader

What feature adjusts the top and bottom margins so that the text is centered vertically on the printed page? a) Vertical justifying b) Vertical adjusting c) Dual centering d) Horizontal centering e) None of these

Description : What feature adjusts the top and bottom margins so that the text is centered vertically on the printed page? a) Vertical justifying b) Vertical adjusting c) Dual centering d) Horizontal centering e) None of these

Last Answer : a) Vertical justifying

A critical ratio scheduling (A) Determines the status of each activity (B) Adjusts automatically changes in activity progress (C) Is a dynamic system (D) None of these

Description : A critical ratio scheduling (A) Determines the status of each activity (B) Adjusts automatically changes in activity progress (C) Is a dynamic system (D) None of these

Last Answer : (D) None of these

Oxygen trim control strategy __ a. continuously measures the oxygen content in the flue gas b. adjusts the combustion air flow c. Continually tuning the air-fuel mixture. d. All of above

Description : Oxygen trim control strategy __ a. continuously measures the oxygen content in the flue gas b. adjusts the combustion air flow c. Continually tuning the air-fuel mixture. d. All of above

Last Answer : d. All of above

In an oscilloscope, ___ adjusts the brightness of the spot by chaning the current on the control grid.

Description : In an oscilloscope, ___ adjusts the brightness of the spot by chaning the current on the control grid.

Last Answer : intensity control