A provision on an ARM allowing the loan to be converted to a fixed rate at some point during the term. Usually conversion is allowed at the end of the first adjustment period. The conversion feature may have additional costs involved.
A clause in a mortgage or note that allows the borrower to convert an Adjustable Rate Mortgage to a Fixed-Rate Mortgage at designated times.
The option to switch the ARM mortgage to a fixed-rate mortgage.
A provision of some adjustable-rate mortgage (ARM) loans that allows the borrower to change the ARM to a fixed-rate mortgage at specified times after loan origination.
The ability to change a loan from an adjustable rate to a fixed rate.
Options to convert an adjustable rate mortgage or balloon loan to a fixed rate mortgage under specified conditions.
An option in an adjustable rate mortgage that allows you to convert to a fixed rate mortgage for the remaining term of the mortgage.
The option to convert an ARM to an FRM at some point during its life. These loans are likely to carry a higher rate or points than ARMs that do not have the option.
An option provided a Member to change from group medical care coverage to another form of coverage, such as individual coverage at a non-group rate. The Health Benefit Plan defines under what conditions a conversion can be made, usually made when the Member leaves the group, such as retirement.
The option to convert an Adjustable Rate Mortgage to a fixed rate mortgage, under specified conditions.
The option to switch an ARM loan to a fixed rate of interest for the remaining term of the loan. Usually takes place on an anniversary date of the loan.
Some ARMs come with options to convert them to a fixed rate mortgage during a given time period without having to go through a refinancing, which could cost up to five or six percent of the loan amount. The interest rate or points may be somewhat higher for a convertible ARM. Also, a convertible ARM may require a small fee at the time of conversion.
A conversion option allows you to convert an ARM to a fixed rate mortgage. You will likely pay a higher rate or more points to have this option.
