Adjustables Pegged To CDs Spreading

American Residential Mortgage Corp. has become the latest big lender to offer adjustable-rate mortgages pegged to yields on certificates of deposits.

The La Jolla, Calif.-based mortgage company is aiming the loan at first-time buyers, stressing relatively low initial interest rates. Currently, the loans are offered at 7%, with the rate adjusting every six months.

American Residential plans to sell its loans, unlike Bank of America and some other large California banks.

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