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Adjustable Rate Rider - An Adjustable Rate Rider is an addition to a security instrument, in the case of mortgages to a loan or note, outlining additional terms and conditions specific to an ARM or Adjustable Rate Mortgage.
The adjustable rate rider will tell you what your base interest rate is,
when that interest rate will adjust. It ill also tell you how often the
interest rate will adjust and what he interest rate ceiling of the mortgage
loan is.
Your closing agent should go over this piece of documentation with you at
closing time to ensure you are fully aware of how your adjustable
mortgage is structured and when and how often it will adjust. The adjustable
rate rider is often one of the last pages in your loan packet so if you are
wanting to review it start at the back of the paper stack!
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