Country Living
Country Living, Country Skills
Country People - A Country Living Resource and Community
Message Board
Country Topics
Trading Post
Memory Lane
Country Skills
Country Cooking

The Kitchen

Photo Gallery
Vintage Photos
Special Collections

Country Humor
Country Sounds
Coloring Book
Interactive Story

Farm Tractors
Tractor Parts
Tractor Manuals

Classic Trucks
Antique Tractors
Modern Tractors
Site Map
Links Page
Contact Us

Country Talk Discussion Board

Re: Re: Re: Re: Re: Re: new car purchases

[ Expand ] [ View Follow Ups ] [ Post Followup ] [ Return to Forum ]

Posted by big fred on February 17, 2004 at 21:46:37 from (

In Reply to: Re: Re: Re: Re: Re: new car purchases posted by toolman on February 17, 2004 at 21:27:01:

Interesting. An ARM is an adjustable rate mortgage. They start out with a low initial rate, which helps young families get payments they can afford. Then, depending on the specifics of the mortgage, there comes a time in 3, 5 or 7 years when the rate changes, usually gets higher, but that's spelled out in the mortgage contract. My ARM is (best I can recall) set after 5 years to change to whatever the T-bill rate is, plus some factor, I think it's 1.65% The maximum amount it can increase in any step is also set in the contract, mine is 2%, and lastly, the highest it can ever get is also in the contract, I think mine is 8.65% or something like that. My initial rate was 4.75% at a time when a 30 yr fixed woulda been around 6%. But there is no renewing, it's all set out in the contract at the start. Of course, you can re-finance, which involves getting an entirely new mortgage contract, and paying off the old one. If you do that, you generally gotta pay a finance charge up front and also spring for an appraisal.

Thanks for the explanation of the Canadian way, I wouldn't have expected differences between the U.S and Canada on mortgages, I learned something new.

Follow Ups:

Post A Followup


Subject: Re: Re: Re: Re: Re: Re: Re: new car purchases


Optional Link URL:
Link Title:
Optional Image URL:

Email Notification: If you check this box, email will be sent to you whenever someone replies to this message. Your email address must be entered above to receive notification. This notification will be cancelled automatically after 2 weeks.

[Home] [Search]

Copyright © 1999-2013
All Rights Reserved
A Country Living Resource and Community