ARMS means Adjustable Rate Mortgages. Some mortgage loans have an interest rate that may be changed at fixed intervals. The majority of these loans are adjusted every 6 months or every year. The interest rate is not arbitrary it is usually based on some published rate available to the general public. The most commonly used published rate is the Eleventh District Cost of Funds. The Eleventh District is the Eleventh District Federal Home Loan Bank. The Eleventh District consists of savings institutions in Arizona, Nevada and California, which are federally insured by the Federal Deposit Insurance Corporation. To locate the Cost of Funds (COFI) go to the Eleventh District Cost of Funds Index at Web site: http://www.fhlbsf.com/resource-center/cofi/.
"11th District Cost of Funds Indices." Federal Home Loan Bank of San Francisco. http://www.fhlbsf.com/cofi/ (accessed October 5, 2011).
Harris, Jack C. Barron's real estate handbook. 3rd ed. Hauppauge, N.Y.: Barron's. c1993 Pages 259-260.
"Interest Rate." federalreserve.gov. www.federalreserve.gov/pubs/arms/armsbrochure.pdfhttp:// (accessed October 5, 2011).
"Adjustable Rate Mortgage." hud.gov. http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/ins/203armt (accessed October 5, 2011).