Posted on: 04th Sep, 2009 04:17 am
what is two-step mortgage
two-step mortgage is an adjustable rate mortgage which has one interest rate for the first part of the mortgage and a different interest rate for the remainder of the mortgage.
Hi,
An adjustable rate mortgage or ARM is at times referred to as a two-step loan. The ARMs usually offer a low interest rate at the initial period of the loan term, generally for 7-10 years. Once that period is over, the mortgage interest rate adjusts for the rest of the loan term. Since the interest rate on this type of mortgages adjusts in two different stages, they are often called two-step mortgages.
An adjustable rate mortgage or ARM is at times referred to as a two-step loan. The ARMs usually offer a low interest rate at the initial period of the loan term, generally for 7-10 years. Once that period is over, the mortgage interest rate adjusts for the rest of the loan term. Since the interest rate on this type of mortgages adjusts in two different stages, they are often called two-step mortgages.
An adjustable rate mortgage which has one interest rate for the first part of the mortgage (usually five or seven years), and a different interest rate for the remainder of the mortgage.