How is the ARM rate determined. My credit is good (720 or so) and I am looking for a loan in the next 3 months.

You have a number of ARM options to consider, between a 1/1, 3/1, 5/1, 7/1, or 10/1, and their ""Start" rates can vary with market conditions. Generally, the longer the "Fixed" period (1, 3, 5,7, or 10 yrs) the higher the rate goes. That rate is set for that period. At the end of Fixed Period you then enter the ARM section of the loan,and those rates will vary depending on what Index you are tied to, plus the Margin that is added to the Index to provide you the Fully Indexed Interest rate you will be charged that year. There are many options and a good loan officer will be happy to explain them in detail to you. Please call me at 703-293-6146 if you have questions. Scott Kinne - VP (NMLS #182351), First Heritage Mortgage.