A return to ARMs. (adjustable-rate mortgages)
This year's hikes in long-term rates have put a chill on fixed-rate loans and brought adjustables back with a flourish. While still a bit standoffish, the secondary markets are more willing than ever to buy them. At Great Western Bank in Chatsworth, CA, adjustable-rate mortgages represented 65% of

Publication: US Banker

ARM comeback. (adjustable-rate mortgages) (Economy and Housing Policy)
The recent interest rate increase has taken a toll on home buying and building. But a comeback in adjustable-rate mortgages is cushioning the blow. Many lender have aggressively marketed ARMs as applications for fixed-rate loans have falle off. Wise builders will help buyers search out and lock in

Publication: Builder

Adjustable-rate mortgage may charge prepayment penalty; Borrower's written consent required, under state law
Wisconsin mortgage customers who sign loan papers without reading them now risk an expensive surprise prepayment penalties. Starting today, state-regulated lenders in Wisconsin most of the industry may add a prepayment penalty to adjustable-rate mortgages, with the borrower's signed consent. A

Publication: The Milwaukee Journal Sentinel

ARM Wrestling: Valuing Adjustable Rate Mortgages Indexed to the Eleventh DistrictA Cost of Funds.(Statistical Data Included)
Richard Stanton Nancy Wallace This article analyzes adjustable rate mortgages (ARMs) based on the Eleventh District Cost of Funds Index (EDCOFI). The behavior of EDOOFI was examined over the period 1981-1993. Adjustments in this index lag substantially behind term structure fluctuations. Also,

Publication: Real Estate Economics

[ Q: I have an adjustable- rate mortgage. ]
Q: I have an adjustable- rate mortgage. The payment is due on the 15th day of each month. If I make my payment by the fifth of the month, will I be saving money because the interest calculation for the following month will be at a lower principal amount A: If you have an amortized mortgage with the

Publication: Press-Telegram Long Beach, CA.

Know when (or if) to hold 'em. (savings institutions hold adjustable-rate mortgages in portfolios)
Savings institutions hold a lot more mortgages in portfolio than other home lenders, thanks largely to their focus on adjustables. That's paying off now, but some experts see a squeeze coming. To have and have not: Actually, the question for thrift institutions is to bold or hold not. Holding

Publication: US Banker