Pennsylvania adjustable-rate mortgages
Like other mortgage types, Pennsylvania adjustable-rate mortgages or ARMs have plenty of benefits. Rates and payments typically start out low which helps borrowers who expect their incomes to rise become home owners. Since a wide variety of ARM programs are available, they’re often chosen by Pennsylvania home buyers whose incomes fluctuate or who need short-term borrowing. After the introductory period, which usually lasts 1, 3 or 5 years, interest rates on ARMs adjust upwards or down, depending on the movement of benchmark index to which the ARM is tied. Economic trends greatly influence the movement of these indices including LIBOR, which is a commonly used benchmark index.
