

| for a period of time, after which it will equity mortgage no second (annually or monthly) adjust up or down to some market index. Common indices in the U.S. include the Prime Rate, the LIBOR, and the Treasury Index ("T-Bill"). Other indexes like 11th District Cost of Funds Index, COSI, and MTA, are also available but are less popular. Adjustable rates transfer equity mortgage no second of the interest rate risk from the lender to the borrower, and thus are widely used where unpredictable interest rates make fixed rate loans difficult to obtain. Since the risk is transferred, lenders will usually make the initial interest rate of the ARM's note anywhere from 0.5% to 2% lower equity mortgage no second the average 30-year fixed rate. In most scenarios, the savings from an ARM outweigh its risks, making them an attractive equity mortgage no second for people who are planning to keep a mortgage for ten years or less. A partial amortization or balloon loan is one where | fha guidelines home loan home equity line of credit faq **
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