Adjustable-rate mortgages are gaining popularity among homeowners, and recently accounted for about one-third of new loan applications in the country – the highest level in a decade – according to an announcement by the University of Southern California Lusk Center for Real Estate. Adjustable-rate mortgages (ARMs) feature fixed rates for far shorter periods than the standard 30-year fixed mortgages. Typically, adjustable-rate mortgages feature fixed rates for periods of one year, three years or five years, but other ARMs are available. While ARMs typically have lower starting rates than fixed-rate mortgages, the rate can quickly exceed that of fixed-rate mortgages in an environment of rising interest rates. And this growth trend in ARMs could create troubles for Southe...
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