If you have a fixed rate mortgage and the market interest rates drop significantly, you can only take advantage of that by refinancing your mortgage. This is called a margin. [...] Advantages Of An Adjustable Rate Mortgage Financial pundits from all ends of the spectrum blame the irresponsible use of adjustable rate mortgages and hybrid adjustable rate mortgages for the increasing number of home owners who are delinquent or in foreclosure on their mortgages. What is the margin? In addition to the annual cap, your mortgage agreement will also spell out the lifetime cap on adjustments.
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