Tag Delaware Adjustable Rate Mortgages

Tag Delaware Adjustable Rate Mortgages

Delaware Adjustable Rate Mortgages

John Thomas July 28, 2008 Tags: , , , , , ,
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Delaware Adjustable Rate Mortgages

Delaware Adjustable Rate Mortgages (ARMs) are mortgage loans with interest rates that can change or adjust.  Delaware ARM loans usually start with lower monthly payments than fixed-rate mortgages because they have a lower “teaser” rate.  With a fixed rate mortgage, the interest rate stays the same during the life of the loan which is the entire term. Call 302-703-0727 to apply for an Adjustable Rate Mortgage or for more information.  You can also APPLY ONLINE

For example, a 30 year fixed rate mortgage has the rate fixed for the entire 30 years.  With an ARM Loan, the mortgage interest rate is only fixed for a set period of time and then changes periodically and payments may go up or down accordingly as the interest rate adjusts. Keep Reading...

Delaware Adjustable Rate Mortgage Holders Prepare for Increase in Interest Rates

John Thomas August 17, 2007 Tags: ,

Delaware Adjustable Rate Mortgage

Delaware Adjustable Rate Mortgage will be increasing their rates because, in 2004, the Federal Reserve made it clear that short-term interest rates would be increased at a measured pace because of a fluctuating US Dollar, unstable oil prices and an evaluation of other economic indicators. In an effort to curb inflation, the Federal Reserve has kept its word and continued to raise short term rates, including one incredible streak of 17 consecutive interest rate hike announcements following meetings of the FOMC. As a result of these interest rate increases, thousands of Delaware homeowners with adjustable rate mortgages will feel the sting of corresponding increases in their annual adjustments. Delaware consumers with revolving debt accounts tied to the prime rate have already felt the impact, as the prime rate always rides 3% above the current Fed Funds Rate. And although an increase in the Fed Funds Rate does have a direct impact on financial markets as a whole, Delaware mortgage rates are affected rather indirectly, and may go up or down based on the prevailing perception investors have of current economic statistics and their reaction to the Federal Reserves after-meeting statements. Keep Reading...

Fully Indexed Rate on ARM What is it?

John Thomas August 12, 2007 Tags: , , ,
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Fully Indexed Rate – What is it?

When you get an Adjustable Rate Mortgage (ARM) you get an initial rate that is fixed for a certain period of time say five years for example. After the first five years of the loan, your interest will begin to adjust based on two factors: your index and your margin.  The mortgage interest rate that your mortgage loan will adjust to after the fixed period is called the Fully Indexed Rate.

Fully Indexed Rate is the combination of the index the mortgage lender has chosen plus the fixed margin the mortgage lender places on the mortgage loan. This is often different than the initial rate offered, or the start rate.  The fully indexed rate will only fluctuate at the adjustment period of your ARM, and may be subject to caps that determine how much they may increase within a certain time period. Keep Reading...

LIBOR Index – What is it?

John Thomas July 2, 2007 Tags: , , , ,
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LIBOR Index – What is It?

London Inter-Bank Offered Rate (LIBOR)

LIBOR Index is the rate of interest that member banks of the British Bankers’ Association charge when they lend money to one another in the wholesale money markets in London, somewhat similar to our Fed Funds Rate.  In fact, the LIBOR Index tends to closely track the US Fed Funds Rate. LIBOR Index is a standard financial index that is used globally and in US capital markets.  The Wall Street Journal publishes the LIBOR index on a daily basis.

In general, changes in the LIBOR Index have tended to be smaller than changes in the Prime Rate.  There are several LIBOR maturities much like U.S. Treasuries, but the 1-month and 6 month are the most readily used and available LIBOR indexes for mortgage loans.  Although they are becoming increasingly more common in use for consumer loans and ARMs, LIBOR Indices have traditionally been a reference figure for corporate and commercial financial transactions. Keep Reading...