Adjustable Rate Mortgage Definition

An adjustable-rate mortgage (arm) is a loan in which the interest rate may change periodically, usually based upon a pre-determined index. The ARM loan may include an initial fixed-rate period that is typically 3 to 10 years.

Adjustable-rate mortgage definition, a mortgage that provides for periodic changes in the interest rate, based on changing market condtions. abbreviation: arm See more.

Alternative mortgage products with features that slowed or eliminated the build-up of borrower equity over time, such as interest-only mortgages and option adjustable. a definition: Default risk.

adjustable-rate mortgage definition: noun Abbr. ARM A mortgage whose interest rate is raised or lowered at periodic intervals according to the prevailing interest rates in the market. Also called variable-rate mortgage..

 · Adjustable rate mortgage definition is – a mortgage having an interest rate which is usually initially lower than that of a mortgage with a fixed rate but is adjusted periodically according to the cost of funds to the lender.

10 CONSUMER HANDBOOK ON adjustable-rate mortgages 2. What is an ARM? An adjustable-rate mortgage diers from a fixed-rate mortgage in many ways. Most importantly, with a fixed-rate mortgage, the interest rate and the monthly payment of principal and interest stay the same during the life of the loan.

 · Adjustable rate mortgage definition is – a mortgage having an interest rate which is usually initially lower than that of a mortgage with a fixed rate but is adjusted periodically according to the cost of funds to the lender.

Adjustable Rate Mortgage Pros and Cons – ARM Definition Guide To Adjustable Rate Mortgages An adjustable-rate mortgage (ARM) is a kind of mortgage where the interest rate that you pay on your house changes periodically, which impacts the amount that your monthly mortgage payment is.

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An adjustable rate mortgage is a type in which the interest rate paid on. fixed- rate is applied to the loan, but there is no set formula defining.

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 · An adjustable rate mortgage is a type in which the interest rate paid on the outstanding balance varies according to a specific benchmark.

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