| the interest rate risk from the lender to the borrower, and thus are widely used where unpredictable interest rates make fixed debt mortgage loan loans difficult to obtain. Since the risk is transferred, lenders will usually make the initial interest rate of debt mortgage loan ARM's note anywhere from 0.5% to 2% lower than the average 30-year fixed rate. In most scenarios, the savings from an ARM outweigh its risks, making them an attractive |
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