Consumer Handbook on Adjustable Rate Mortgages - Wells …
6 8 Table of contents Mortgage Shopping Worksheet What is an ARM? How ARMs wo rk: the basic features 9 Initial rate and payment 9 The adjustment period 9 The index 9 The margin 10 Interest-rate caps 11 Payment caps 13 Types of ARMs 14 Hybrid ARMs 14 Interest-only ARMs 14 Payment-option ARMs 15 Consumer cautions 16 Discounted interest rates 16 Payment shock 16 ................
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