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An adjustable rate mortgage or ARM, also called variable rate mortgages, is a loan where the interest rate is not fixed but instead varies periodically. Interest rates on ARMs are usually linked to an index, like the LIBOR, and rates vary to reflect to the cost to the lender of borrowing money in the current credit market.A home equity loan is a loan where the borrower uses the equity in their home as collateral for repayment of the loan. Home equity loans are often used to finance major expenses like home renovations, unforeseen medical bills or childrens college education. A home equity loan creates a lien against the borrower's house, and reduces the homeowners equity in the home. - Indiana Online Cash Advance Loans
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