How much can an adjustable rate mortgage increase?

An adjustable rate mortgage interest rate will continue to increase until it hits it's ceiling rate. The maximum rate is defined in the adjustable loan agreement. Adjustable rate mortgage interest rates are calculated by adding a margin rate to the index. The base rate fluctuates with the mortgage market and is not controlled by the lender. The margin is a number that is never changed. Most lenders add between 2 to 5 percent.

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