ABN Amro Offers LIBOR, IO ARMs

ABN Amro Mortgage Group Inc., Ann Arbor, Mich., has announced the roll-out of two new adjustable-rate mortgage loans through mortgage.com.The first, an interest-only ARM, will enable consumers to afford a larger house with a lower monthly payment or "substantially" reduce monthly payments on their current home, according to ABN Amro. The interest rate remains fixed, and the homeowner pays only on the loan's interest, for the first three, five, seven, or 10 years of a 30-year term. The second new product, an ARM tied to the London interbank offered rate, offers lower initial interest rates and monthly payments than a conventional fixed-rate product, the company said. Periodic and lifetime rate caps determine the maximum allowable increases in the interest rate, and the program offers one-, three-, five-, seven-, and 10-year LIBOR loans.The company can be found online at http://www.abnamro.com and http://www.mortgage.com.