Types of Standard ARMs
ARMs with different indexes are available for purchases and refinances. The interest rate and monthly payments varies on the change made on the index rate.6-Month Certificate of Deposit (CD) ARM
This program has a maximum interest rate adjustment of 1% every six months. This CD index usually reacts quickly to changes in the market.6-Month Treasury Average ARM
Like the 6-Month CD ARM, this program has a maximum interest rate adjustment of 1% every six months. This program reacts slowly to the rapid changes in the market, therefore causes adjustments in the ARM interest rate to lag behind in some other market indicators.12-Month Treasury Average ARM
This program has a maximum interest rate adjustment of 2% every 12 months. The Treasury Average reacts slowly to market fluctuation, therefore the ARM interest rate will lag behind some other market indicators.1-Year Treasury Spot ARM
This program has a maximum adjustment of 2% every 12 months. This program reacts slower than CD index but faster than Treasury Average.