| If you are considering an Adjustable Rate Mortgage | | | | shopping for an Adjustable Rate Mortgage. |
| there are several things you need to know about your | | | | A common margin for Adjustable Rate Mortgages is |
| mortgage rate. Knowing how your lender adjusts your | | | | 2.75%. If you see loan offers with a higher margin than |
| loan, which index it is tied to, and what the lender's | | | | this the lender is trying to get money out of you faster |
| margin is can help you avoid payment shock. Here are | | | | when adjusting your payment. When you're shopping |
| several tips about Adjustable Rate Mortgages and | | | | for an Adjustable Rate Mortgage the margin you pay |
| how the lender marks up your interest rate to help you | | | | is subject to negation just like most aspects of your |
| avoid paying too much for your mortgage loan. | | | | loan. You might explore the option of paying a point to |
| The margin is the amount your mortgage lender marks | | | | buy down the margin instead of lowering your initial |
| up the index your Adjustable Rate Mortgage is tied to | | | | mortgage rate. It is not uncommon for mortgage |
| when resetting your mortgage rate. The lender's | | | | lenders to lower margins by half a point through the |
| margin determines how quickly your mortgage interest | | | | course of negotiation. Always ask your lender for a |
| rate rises when the lender adjusts your loan. When | | | | margin reduction before choosing an Adjustable Rate |
| comparing two loans with identical interest rates and | | | | Mortgage. |
| indexes, the loan with the higher margin will cost more | | | | You can learn more about your mortgage options with |
| and reach its cap during rate swings more quickly. This | | | | a free, six-part video tutorial. |
| is why it's important to consider the margin when | | | | |