Discretionary ARM
An ARM on which the lender has the right to change the interest rate at any time, for any reason, by any amount, subject only to a requirement that the borrower be notified in advance. The discretionary ARM is at the opposite pole from Indexed ARM's on which rate adjustments are completely rule-based. Discretionary ARM's were long the standard mortgage in the U.K. and in other English-speaking countries that imported it from the U.K., such as India and South Africa. They never caught on in the U.S., where the indexed ARM prevails.
Popular Mortgage Terms
A home built entirely in a factory, transported to a site, and installed there. Manufactured homes are distinguished from 'modular,' 'panelized'' and 'pre-cut' homes. Manufactured houses ...
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A mortgage lender or mortgage broker. ...
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A mortgage Web site that shows mortgage prices posted by participating lenders, in some cases hundreds of them. ...
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A borrower with the best credit rating, deserving of the lowest prices that lenders offer. ...
The number of days for which any lock or float-down holds. The longer the period, the higher the price to the borrower. ...
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