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Adjustable commercial mortgage
funding is a real estate loan with an interest rate that changes periodically,
according to an index that is selected when the mortgage is issued. With an ARM
(Adjustable Rate Mortgage), you might qualify for a larger loan and your ARM could
be less expensive than a fixed rate loan over a long period.
There
are a variety of programs to choose from: - Easy in/easy out
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loan
- Adjustable rate with a future option to increase loan
- Simple interest
loans with or without graduated payments
- . . . and more
To compare one
ARM with another or with a fixed rate mortgage, you need to know about indexes,
margins, discounts, cap structures, negative amortization and convertibility.
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