Definitions for "Adjustable Rate Mortgage"
Keywords:  preselected, vrm, fluctuate, aml, cap
An Adjusted Rate Mortgage (ARM) is a loan where the interest rate may vary for...
A home loan where the interest rate is changed periodically based on a standard financial index. ARM's offer lower initial interest rates with the risk of rates increasing in the future. In comparison, a fixed rate mortgage (FRM's) offers a higher rate that will not change for the length of the loan. ARMs often have caps on how much the interest rate can rise or fall. You can shop and compare mortgage options securely online.
A mortgage with an interest rate that is periodically adjusted to follow a pre-selected published index. The interest rate is adjusted at certain intervals during the loan period.
Keywords:  basis
Adjusted Basis