It will depend on the lender and the risk of default.
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The Adjustable-rate mortgage(ARM) rate is determined by interest rate, adjustment period, index rate, the margin,discount, prepayment, and many other factors.
One might want to point out the interest rate on the mortgage, if there are any 'points' to be paid and how this will affect said mortgage, and whether the annual percentage rate is fixed or a variable.
Annual Interest Rate divided by 12= Monthly Interest Rate
The answer for rate in simple interest is =rate= simple interest\principle*time
Corresponding compounding is the interest rate on loan or the financial product restated from nominal interest rate as an interest rate with an annual compound interest.