1 Year Morgage: This type of loan operates as a traditional Adjustable Rate Morgage. It has
an initial interest rate that is usually much lower than 30 Year Interest Rates. This interest rate
is 'Fixed' for that first year and, thereafter, will adjust in relation to an Index. These 'adjustments'
to the rate come in a few common methods. The first type is for One Year ARM's that adjust only once
each year and have the same payment for 12 months before adjusting again. The next type is One Year
ARM's that adjust every 6 Months and the payments stay the same for those 6 months until it adjusts
again. The last type is for 1 YR Morgages that adjust every month (after the firs year, of course) and
the payments resultantly adjust every month.
These loans are especially beneficial when interest rates are declining because you will not have to
refinance in order to receive the benefit of the lower rates because the loan adjusts automatically.
It is also a good loan for someone that needs a very low payment to qualify for the loan or needs
a low payment only at the beginning of the loan.
1 Year Morgage Deals - Lower Your Payments With A 1 Year ARM...
