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With adjustable rate mortgages, the interest rates are dependent on general interest rates or what is known as an index. There are many adjustable rate mortgages that can be considered hybrid mortgages, in that they offer a fixed interest rates for a period of 1, 3, 5, or 7 years. Many other types of ARMs typically have shorter interest rate adjustment periods however. These types of hybrid adjustable rate mortgages may be better options for you if you only intend to stay in your home for a few years. Bear in mind however that payments for adjustable rate mortgages may rise along with the rest of your interest rates.

03/16/09 17

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