Definition of adjustable-rate mortgage in the Definitions.net dictionary. Meaning of adjustable-rate mortgage. What does adjustable-rate mortgage mean? Information and translations of adjustable-rate mortgage in the most comprehensive dictionary definitions resource on the web.
adjustable rate mortgage (arm) A mortgage loan with payments usually lower than a fixed rate initially, but is subject to changes in interest rates. There are a variety of ARMs that can have an initial interest rate that lasts three to 10 years, adjusting annually thereafter.
A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.
A 5 year ARM, also known as a 5/1 ARM, is a hybrid mortgage. A hybrid mortgage combines features from an adjustable rate mortgage (ARM) and a fixed mortgage. It begins with a fixed rate for a specified number of years, but then changes to an ARM with the rate changing every year for the rest of the term of the loan.
Adjustable-rate mortgage definition, a mortgage that provides for periodic changes in the interest rate, based on changing market condtions. Abbreviation: ARM See more.
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An adjustable-rate mortgage, or ARM, is a mortgage with an interest rate that can be increased or decreased from time to time, depending on various factors. An ARM is helpful for someone taking out a mortgage during a period of low interest rates, especially if the ARM has a relatively longer fixed-rate period.
Variable Loan Definition Here’s a complete definition of a variable interest rate, how it affects your credit. short-term interest rate that is used as a basis to price various loan products. The U.S. prime rate is.
When rates start to go up, an adjustable rate mortgage (ARM) starts to make a lot of sense. However, while most consumers responsibly carry an ARM, there have been situations where the ARM didn’t make financial sense, and as a result, the loan earned a tarnished reputation.
Adjustable-rate mortgage (ARM): read the definition of Adjustable-rate mortgage (ARM) and 8,000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
including the impact of the mortgage and other debts Product features that mitigate payment shock, such as limits on the amount monthly payments can increase when the interest rate on an adjustable.