Definitions for **"Adjustable Rate Mortgage"**

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.

Mortgage loans under which the interest rate periodically adjusted to more closely coincide with current rates. The amounts and times of adjustment are agreed to at the inception of the loan.

Adjustable rate preferred stock (ARPS) Adjusted balance method

A mortgage which permits the lender to adjust the interest rate periodically based on the movement of a specified index.

These are adjustable rates that can change during the course of a loan's term. Most ARM's in the U.S. are called "indexed ARM's" and fluctuate according to an index which the lender has no control over.

A mortgage loan with an interest rate that changes periodically throughout the term of the loan based on a specific standard rate such as the federal funds rate or United States Treasury Bills

This is a type of mortgage in which the interest rate changes at set intervals throughout the term of the loan. These changes are based on the current market index plus a margin.

A mortgage with an interest rate that may change, usually in response to changes in the Treasury Bill rate or the prime rate.

A mortgage whose interest rate increases and decreases in direct proportion with the national interest rate. As a result, monthly mortgage payments can raise or lower depending on whether the national interest rate goes up or down. A cap or limit is usually placed on the interest rate to prevent it from rising indefinitely.

Mortgage loan for which the interest rate is periodically adjusted. This adjustment is determined by a preselected, published index.

A mortgage in which the lender adjusts the interest rate periodically according to a spcified index.!-- google_ad_client = "pub-8599861296960561"; google_ad_width = 180; google_ad_height = 90; google_ad_format = "180x90_0ads_al"; google_ad_channel ="1891482732"; google_color_border = "FFFFFF"; google_color_bg = "FFFFFF"; google_color_link = "0000FF"; google_color_url = "008000"; google_color_text = "666666";

ARMs are mortgages where the rate of the loan changes during the life of the loan. Rates usually change at one-, two-, three-, or five-year intervals. The rate changes based on changes in an index like Treasury Bills, LIBOR, or a national or regional average cost of funds index (which index your loan follows depends on the terms of your loan). With an ARM, your payments on your loan fluctuate depending on the index your loan follows.

A mortgage loan under which the interest rate is periodically adjusted to more closely coincide with current rates. The adjustments are determined and the rate reset based upon a specific index at fixed intervals during the loan term.

Mortgages in which the loan rate changes during the life of the loan, usually at one-, three-, or five-year intervals. Any changes are governed by the movement of an index, such as Treasury bills, Treasury securities index, or a national or regional average cost of funds index.

A mortgage in which the interest rates varies during the term of the mortgage. Also called a Variable Rate Mortgage.

A loan agreement in which the lender may adjust the interest rate from time to time to reflect changed conditions in the mortgage money market. These changes can be based on a variety of indexes.

A mortgage in which the interest rate and payment changes periodically over the life of the loan based on changes in a specified index. The changes are usually subject to a cap.

A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. This product generally comes with a lower initial interest rate than 30 year fixed products.

Interest rate and monthly payments are adjusted periodically during the life of the loan to correspond with changes in the money market. The initial interest rate is usually lower than that for a fixed-rate loan. A cap limits the amount by which either the rate or the payment can change.

A mortgage in which the interest rate changes over time, based on an index.

A mortgage that lets the lender adjust the interest rate periodically according to a pre-selected index. Payments may go up or down according to this adjustment.

Mortgage loan that allows the interest rate to be changed at specific intervals during the term of the loan.

also known as variable-rate loans, usually offer a lower initial interest rate than fixed-rate loans. The interest rate fluctuates over the life of the loan based on market conditions, but the loan agreement generally sets maximum and minimum rates. When interest rates rise, generally so do your loan payments; and when interest rates fall, your monthly payments may be lowered

A mortgage in which the interest rate changes periodically during the life of the loan according to the movement of a pre-selected index.

ARM (Variable Rate Loan) A mortgage where the interest rate adjusts periodically according to a pre determined index and margin.

A loan with an interest rate that fluctuates according to the movements of a predetermined index.

A mortgage in which the interest rate changes at certain intervals during the term of the loan.

Mortgage loans in which the interest rate and monthly payments may be adjusted periodically to correspond with changes in the cost of funds.

A mortgage where you have agreed that your interest rate can be adjusted at specified intervals using a formula based on the federal prime rate.

A mortgage whose interest rate is periodically adjusted to more closely coincide with current rates based on an index.

Amortization Caps

Mortgage loan with an interest rate that changes every 6 months or so, adjusting up or down with the market. It usually has a "cap", or maximum interest rate. ARMs are compared to fixed rate mortgages.

Adjustment Period Amortization

ARMs are mortgages for which interest rate and payment may change over the life of the loan. Usually at the commencement of the loan, there is a period over which the interest rate is fixed. After the fixed period is over, the interest rate and payment may change based on changes to a specified index.

A home loan whose rate of interest can change over time.

An adjustable-rate mortgage is a mortgage whose interest rate and monthly payments vary throughout its life. ARMs typically start with an unusually low interest rate (see teaser rate) that gradually rises over time. Of the overall level of interest rates drops, as measured by a variety of different indexes (see index), the interest rate of your ARM generally follows suit. Similarly, if interest rates rise, so does your mortgage's interest rate and monthly payment. The amount that the interest can fluctuate is limited by caps (see also periodic caps and lifetime caps). Before you agree to an adjustable-rate mortgage, be sure that you can afford the highest payments that would result if the interest rate on your mortgage increased to the maximum allowed.

A mortgage with an interest rate that changes during the life of the loan according to movements in an index rate. Sometimes called AMLs (adjustable mortgage loans) or VRMs (variable-rate mortgages).

A type of mortgage loan program in which the interest rate and payments may be adjusted as frequently as every month. The principal loan balance or term of the loan may also be adjusted to reflect the rate change. The purpose of the program is to allow mortgage interest rates to fluctuate with market conditions.

A loan with an interest rate that fluctuates based on a specified financial index, such as Treasury securities, or the 11th District Cost of Funds, etc.

A mortgage which the interest rate is not fixed but can change periodically based on changes in a financial index. Usually, a Adjustable Rate Mortgage has a cap on how much the interest rate can fluxuate in a given period and over the life of a mortgage. Common financial indexes that interest rates are tied to include, the interest rate on different US Treasury Bonds. There is an excellent brochure available by the Federal Reserve here.

The interest rate on this type of mortgage loan varies during life time of the loan.

A mortgage where the interest rate can change.

A mortgage in which the interest rate can be adjusted at specified intervals by a given formula using an index and margin.

Mortgage whose interest rate changes periodically based on the upward or downward movement of a specified reference rate—for example, six-month or one-year Treasury bills.

Adjustable mortgage loan (AML) or a variable rate mortgage (VML). This is a mortgage whose interest rate is tied to an economic index and fluctuates with the market.

A loan with an interest rate that can be changed periodically, based upon increases or decreases in a specified economic index.

Mortgage where the interest rate adjusts with a predetermined market index rate over the full term of the loan. Usually based off of the LIBOR.

A contractual loan may have provision for adjustable rates. In the case of a home mortgage loan, the interest rate changes over time with movements in an index.

A mortgage tied to an index and separated by a margin that allows the interest rate to change based on the index changes.

Mortgages with an interest rate that is adjusted periodically depending on a specified financial index.

A loan program with a rate which adjusts periodically on the basis of changes in a scheduled payment plan or specified index. Sometimes called a Variable Rate Mortgage.

The interest rate on an adjustable rate mortgage fluctuates in accordance with an index, as specified in the mortgage document itself.

A mortgage agreement where the interest rate varies periodically according to an index, which adjusts to match current interest rates. Payments will fluctuate according to the interest rates.

A mortgage that is assigned an initial interest rate. The interest rate will adjust periodically according to certain factors, including the index that it is tied to. One of the main benefits of an ARM is that the interest rate is often lower than a standard 30-year fixed-rate mortgage, and may provide the borrower with more payment flexibility.

A mortgage that has a fixed interest rate for a specific period of time, but may adjust annually based upon the movement of a specified index.

A mortgage loan that allows the lenders to periodically adjust the interest rate in accordance with a specified index as agreed to at the inception of the loan.

Also known as a variable rate mortgage. The interest rate on these mortgages changes periodically.

A mortgage where the interest rate is liable to change over the term of the loan and which is dependent on influences such as interest rates on Treasury securities.

The interest on an ARM may vary up or down at fixed intervals. The changes are tied to a financial index such as one-year Treasury notes. The ARM often offers a low beginning interest rate as a "teaser." However, this rate will go up after a certain time. If interest rates are low, an ARM may be a good option. This is especially true if its cap (the highest interest you may be charged) is not more than a few points higher than the current fixed rate. ARMs are of special interest to buyers who know their income will rise in the future or who don't plan to own the home for many years.

A mortgage in which the interest rate is fixed for a disclosed period of time, and then adjusts according to a set index and margin determined by the lender and specific loan program.

interest rates on this type or mortgage are periodically adjusted up or down, depending on the specified financial index.

a mortgage loan subject to changes in interest rates also known as an ARM. When rates change, ARM monthly payments increase or decrease at set intervals as determined by the terms of the mortgage. Typical ARMs have an initial period during which the rate is fixed followed by rate adjustments every six to twelve months depending on the type of ARM.

A mortgage in which the interest rate changes periodically based on a pre-selected financial index. Most ARMs have caps on how much an interest rate may increase. Also known as variable rate mortgage.

A home loan whose payments adjust periodically based on the rise and fall of interest rates. These adjustments usually occur within predetermined limits called CAPS. Typically these loans offer a lower interest rate initially.

A mortgage having an interest rate that adjusts periodically based upon a pre-selected index in addition to a margin. Adjustable rate mortgages may have a payment or rate cap. 3/1, 5/1, 7/1 and 10/1 ARMs Adjustable-rate mortgages with fixed rates for three-year, five-year, seven-year and 10-year periods, respectively, which may adjust annually after the initial period. See also: cap.

With an ARM, the interest rate is tied to a leading economic indicator such as the one-year Treasury Bill rate or the cost of funds for an area. The index, plus a margin, typically 2.0 percentage points, determines what the new interest charges will be. In exchange for allowing the lender to adjust the interest rate, borrowers get an initial rate that is lower than fixed-rate loans. The lower initial rate makes it easier to qualify, because the initial monthly payments are smaller. Rate adjustments are made at regular intervals through out the term of the loan, usually every year. Make sure you know which index to which the rate is tied, and follow the index yourself in the newspaper. Typically an ARM has an interest rate cap, which limits how much of a rise you can get in any one year and over the total life of the loan. Most ARMs have annual caps of two percentage points and six percentage points over the life of the loan. This is a great product for first time home buyers.

A loan with an interest rate that changes periodically in keeping with a current index, such as one-year treasury bills. Typically, however, ARMs can jump more than two percentage points per year or six points above the starting rate.

A mortgage that has a rate change frequency determined by the prime rate, treasury rate, or other money exchange rate during different term intervals of the loan.

This is a mortgage where the interest rate is not fixed for the entire term of the loan. The interest rate is tied to an index (plus an added margin), and is adjusted at specified time intervals (the adjustment period). Typically there is a limit on how much the interest rate can rise or fall in a given adjustment period, and there may also be a lifetime cap that sets a maximum rate.

A mortgage loan where interest rate adjusts according to a market index. This means as the interest rate goes up or down, so does your mortgage payment.

Loans with interest rates that can fluctuate during the term, abased on an index to which the interest rate is tied.

A mortgage design that permits the lender to adjust the interest rate at periodic intervals, with the amount of change generally tied to changes in an independent published index of interest rates or yields.

A mortgage that permits the lender to periodically adjust the interest rate when the index changes.

A mortgage that allows the lender to adjust the mortgage's interest rate based on changes to a pre-selected index. When rates change, the mortgage's monthly payments will increase or decrease, but are usually subject to a cap.

A loan which has a variable interest tied to a pre determined index, usually LIBOR or T-Bill

An adjustable rate mortgage is a mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.

A loan on which monthly payments will increase or decrease over time, based on changes in the ARM's interest rate index.

A mortgage with an interest rate fixed for only a short period. At the end of the period the rate will be adjusted up or down based on current interest rate indexes.

With an adjustable rate mortgage, the interest rate will change, usually at preset intervals and by preset or maximum levels.

An adjustable rate mortgage (ARM) allows the lender to adjust the interest rate of the loan. Usually these changes are dictated by the market conditions that exist. Most ARM's are limited by a rate change cap and a lifetime cap.

Adjustable-Rate Mortgages (ARM's) are mortgages on which the interest rate and monthly payment will change periodically. Most ARM programs have an initial fixed interest rate period of two to seven years.

A mortgage which begins with a low interest rate, fixed for a specified initial period of the loan term, then "adjusts" at specified intervals during the remainder of the loan term. Adjustments are based on an "index" (the value of which can change over time) plus a "margin." The index plus the margin determine the fully adjusted rate, which is typically subject to certain limits (ceilings and floors). These limits are referred to as "caps."

An adjustable rate mortgage (ARM) is calculated on a 30-year basis. The rates adjust at scheduled intervals. An ARM starts with a fixed-rate period and adjusts thereafter. Example: fixed for 3 years, then adjusts every year.

a broad term for a mortgage with rate and terms that can change. The "ARM" has become commonplace, with allowable ranges as to time intervals, percentage of increase or decrease, and total increases or decreases likely to change as market conditions change.

A loan in which the interest rate is periodically adjusted according to movements in a preselected index, such as Treasury Bill rates.

The interest can change periodically up or down. ARMs usually offer lower initial interest rates. Great for first time homebuyers. Credit Union offers 1 year and 5 year ARMs.

A mortgage with a variable interest rate, usually tied to an index such as the prime rate.

A mortgage loan on which the interest rate can be changed periodically, based on increases or decreases in specified economic indicators.

mortgage loan subject to changes in interest rates; ARM monthly payments may increase or decrease at specific intervals determined by the lender, and disclosed at inception of the mortgage. ARMâ€(tm)s interest percentage rate is tied to either the T-Bill or Treasury Note and there is a cap on the changes over the life of the loan.

The interest rate on these loans fluctuates periodically in response to changing market conditions. As the interest rate fluctuates, your mortgage payment will be adjusted up or down. Rate and payments adjust at the end of 1, 3, or 5 years, and every year thereafter. The initial rate on the one-year ARM is typically 2%–3% below fixed rate loans.

A type of mortgage that includes terms that allow for interest rate changes at predetermined times (e.g. annually).

A mortgage loan with a variable interest rate that is adjusted at set intervals specified in the terms of the loan to reflect current market rates.

Also known as ARM it is a mortgage that is subject to changes in interest rates. ARM monthly payments increase or decrease at intervals determined by the lender usually changing with movements in the prime rate.

mortgage loan with an interest rate that changes periodically. The change in rate is based upon the changes in a specified . The frequency of change is usually every 6 months or every year but differs from loan program to loan program.

A mortgage loan with an interest rate that increases or decreases periodically during the time it takes you to pay the loan back. The changes in the interest rate will usually happen once a year, and are based on how much the average interest rate rises and falls in the marketplace during that time. Usually, ARMs come with safety features called "caps" that prevent your payments from changing too drastically, even if the average interest rates rise or fall sharply in that period. The terms, adjustment schedule, and index are agreed upon at the inception of the loan.

An adjustable rate home loan with a 30-year term. The interest rate remains the same for the first three years, then changes annually thereafter. The interest rate changes annually subject to margin and lifetime caps of the particular loan program. The interest rate is determined by the U.S. Treasury Securities index.

A mortgage that changes interest rate periodically according to a pre-selected index (over which the lender has no control). Typically, these are based on the London InterBank (LIBOR) index, the 1 Year Treasury Bill, or the Cost of Funds Index (COFI).

A home loan whereby the lender may adjust the interest rate periodically during the life of the loan based upon changes in a specified financial index.

An ARM is a mortgage with an interest rate that changes at pre-determined intervals. Which rises or drops in relation to changes in a specific financial index.

Mortgage loan that has a flexible interest rate over the course of its term, as opposed to a fixed rate mortgage.

A mortgage with an interest that changes over time in line with movements of an index.

A loan with an interest rate that is subject to adjust periodically based upon market conditions.

A loan that has an interest rate and payment that change periodically based on a pre-selected index.

An adjustable rate mortgage is a mortgage that can vary (up or down) over the life of the loan in relationship to changes in the index (ARMs are sometimes called variable rate mortgages). Typically, the initial mortgage interest rate on ARMs are lower than those for fixed rate mortgages; however, over time, since rates on ARMs can vary over the life of the mortgage, a fixed rate loan may eventually have a lower interest rate. Your lender can provide you with details regarding the mortgage programs that are available.

A mortgage loan which allows the lender to adjust the interest rate periodically in accordance with a stated index and as agreed to at the inception of the loan by all parties. (Also known as variable rate mortgages)

A mortgage in which the interest rate is adjusted periodically. The adjusted rate is arrived at by adding a predetermined margin to an agreed upon index, subject to certain limits called caps.

A mortgage loan in which the interest rate varies in accordance with a formula specified in the mortgage note which includes use of a specified index and may result in changed monthly payments.

A mortgage with an interest rate that may change in response to Treasury bill rates or other predetermined index. For instance, when the Federal Reserve raises interest rates and you have an adjustable interest rate mortgage, your monthly payment will increase.

An ARM Loan has an initial interest rate that is often lower than a conventional fixed-rate mortgage. This initial rate is usually locked in for one or more years. Once the initial term is over, the interest rate on an ARM loan may go up within specified limits over predetermined intervals during the course of the loan. The lower initial interest rate associated with an ARM loan translates to a lower initial monthly payment. The tradeoff, however, is the potential for a higher payment if interest rates go up as the ARM loan progresses.

A type of real estate loan where the interest rate, terms or both can change. This type of loan causes the borrower to absorb the uncertainty of changes in the market place during the life of the loan. Also called a variable rate mortgage.

Interest rates and monthly payments are adjusted periodically during the life of the loan to correspond with changes of the money market. The initial interest rate is lower than that of a fixed rate mortgage. A cap limit by which either the rate or the payment can change.

A loan that has an interest rate which increases or decreases at specified times during the life of the loan. The change in the interest rate is usually tied to a financial index. The loan may feature a payment cap and/or rate cap(s).

Mortgage loan in which the interest rate is not fixed, but rather may change at specified intervals over the life of the loan.

Mortgage whose interest rate and monthly payments vary throughout its term. ARMs typically start with a low rate that can gradually rise over time. If the overall level of interest rate drops, as measured by a variety of different indexes, the rate of an ARM generally follows suit. Similarly, if interest rates rise, so does a mortgage's rate and monthly payment. The amount that the rate can rise or fall is limited by caps.

An "Adjustable Rate Mortgage" or ARM refers to the type of mortgage loan where the interest rate and monthly payments can be adjusted to rise and fall with market conditions. The interest rate and payments can be adjusted as frequently as once a month or you can adjust the principal loan balance or the loan term to reflect the rate change.

interest rates on this type of mortgage are periodically adjusted up or down depending on a specified financial index.

A type of real estate loan in which either the interest rate charged or the length of the loan, or both, can change. Adjustable rate mortgages became very popular during the 1980s due primarily to the reluctance of lenders to quote a fixed interest rate loan to potential borrowers. By using an ARM, a lender is able to pass on the uncertainty of changes in interest rates to the borrower if rates change during the life of the loan. ARMs are normally tied to some index such as government securities.

A mortgage with an interest rate that is adjusted periodically to reflect changes in market conditions. Your mortgage payments are adjusted up or down as the interest rate changes.

A mortgage that allows for the lender to adjust the interest rate periodically, as agreed upon at the inception of the loan and based on a specific index plus a margin.

A mortgage where the interest rate is not fixed for the life of the loan. These mortgages adjust periodically based on an index that changes with market conditions. The rate of interest is the sum of the index plus a margin ( the margin remains fixed for the life of the loan). Most ARMs have periodic interest rate and payment caps, as well as a life cap. ARM's may also be referred to as AML's or VRM's.

The interest rate changes with market conditions on this real property loan on pre-determined dates.

A mortgage in which the interest rate is adjusted periodically based on the movement of a financial index.

A mortgage whose rate of interest can change over time.

A loan with an interest rate that changes with market conditions on predetermined dates.

Is a mortgage in which the interest rate is adjusted periodically based on a pre-selected index. ARM loans are also known as the re-negotiable rate mortgage or the variable rate mortgage.

A adjustment mortgage loan in which the interest rate can move up or down depending on current financial market position.

A mortgage whose interest rate is adjusted according to an index over a specific time period.

A loan that allows the interest rate to be changed periodically.

A mortgage in which the interest rate is adjusted periodically according to a pre-selected index.

A mortgage with an interest rate that may increase or decrease during the term of the loan, according to determined margins with limits on increases or decreases (called "caps").

ARMs are mortgages with interest rates that can vary over time. The interest rate is fixed for an initial period of time. For example, a 5/1 ARM has a fixed rate for the first 5 years. ARMs usually have a lower initial interest rate than a 30-year fixed-rate loan, but ARMs carry some risk since interest rates could rise after the initial period. View the tradeoffs with the Fixed vs ARM mortgage calculator.

An adjustable rate mortgage, commonly referred to as an ARM, is a loan type that allows the lender to adjust the interest rate during the term of the loan. Generally, these changes are determined by a margin and an index so that the interest rate changes with market conditions on pre-determined dates. Most often these interest rate changes are limited by a rate change cap and a lifetime cap. If you apply for an adjustable rate mortgage, the lender is required to provide you with an ARM Program Disclosure which spells out the terms of the loan.

A mortgage in which the interest rate is adjusted periodically based on a designated financial index. Also known as variable rate mortgage. Which ARM is right for you

a mortgage in which the interest rate is adjusted periodically, based on a pre-selected index. It is also sometimes referred to as the renegotiable rate mortgage, variable rate mortgage, or Canadian rollover mortgage.

a mortgage with an interest rate that changes periodically, according to an index that is selected when the mortgage is issued. The initial interest rate is lower than that of fixedâ€“rate mortgages, but monthly payments can go up or down as the rate is adjusted.

A mortgage in which the interest rate changes periodically to coincide with fluctuations in a corresponding index. CircleLending ARMs are tied to the prime rate as reported in the Wall Street Journal.

A loan with an interest rate that changes periodically, to more closely coincide with current interest rates. The amounts and times of adjustment are agreed to at the inception of the loan. Typically, however, ARMs can increase two percentage points per year or six percentage points above the initial interest rate.

A loan where the interest rate may change during the life of the loan, based on the movement of an index, resulting in change in the payment amount

A home loan that permits the lender to adjust its interest rate periodically during the life of the loan. The interest rate will correspond with the rise and fall as the US Financial Market.

A mortgage loan with an interest rate that changes at regular intervals, based on an established index.

A loan with an interest rate that fluctuates based on a specified financial index. Please review your contact for terms.

A loan that allows the lender to adjust the borrower's interest rate and payments at designated times and sometimes with designated limits. Lower interest rates are common.

A mortgage in which the interest rate is adjusted periodically in accordance with a market indicator, to more closely coincide with the current rates. Also sometimes known as renegotiable rate mortgage, the variable rate mortgage, or the graduated rate mortgage.

A variable or flexible rate mortgage with an interest rate that adjusts periodically according to the financial index it is based upon plus a margin. As a result, the interest rate on your loan and the monthly payment will rise and fall with increases and decreases in overall interest rates. To limit the borrower's risk, the ARM may have a payment or rate cap.

A specific type of mortgage loan where the interest rate and payments may be periodically adjusted (increased or decreased) over the life of the loan. This adjustment is determined by a pre-selected published index.

A mortgage in which the interest rate varies, and is adjusted periodically based on an "index". Also known as variable rate mortgages, ARMs remain popular mortgage options due to lower initial interest rates. They shift the impact of interest rate fluctuations from the lender to the borrower. The interest rate used for an ARM is the value of an plus a margin for the lender. The is intended to be the actual cost of borrowing money, and is based on a recognized measure of the economy. To protect the borrower, an ARM will also incorporate a rate adjustment period, and an interest rate cap, each of which protect the borrow from the costs of rapid or unexpectedly large rises in interest rates.

A mortgage in which the interest rate is adjusted periodically and based on a pre-selected index, such as Treasury securities.

A mortgage loan in which the interest rate is not constant over the life of the loan, but is adjusted periodically according to a predetermined formula or index.

A mortgage whose interest rate changes over time based on a pre-determined economic index.

A loan for which the interest rate is subject to change on a periodic basis (i.e. every 1, 3, or 5 years).

mortgage in which rates/payments vary according to the current rate of interest. Many offer lower-than-market initial interest rates that rise only gradually for the first few years.

A mortgage loan that has an interest rate that changes periodically based on economic indexes. The interest rate of an ARM loan is initially lower than a fixed rate loan.

A financing technique in which the lender can raise or lower the interest rate according to a set index.

A mortgage loan that allows the interest rate to fluctuate over the maturity of the loan. Two of the benefits of an ARM are that the initial rate is lower than most other types of loans and these loans are usually assumable.

A loan that allows the lender to adjust the borrower's interest rate and payments at prescribed times and sometimes with prescribed limits. Lower interest rates are customary.

Is a mortgage in which the interest rate is adjusted periodically based on a preselected index. Also sometimes known as the re-negotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.

A variable or flexible rate mortgage with an interest rate that varies according to the financial index it is based upon. To limit the borrower's risk, the ARM may have a payment or rate cap. See also: cap.

A mortgage in which the interest rate is adjustable periodically based on a pre-selected index. This often has lower monthly payments, and it also has a ceiling above which payments cannot go.

Also known as variable rate, an ARM is a mortgage with interest rates that may fluctuate up or down periodically, according to the index upon which it is based. Most ARMs will have a limit on the amount that the rate can vary. See index, interest cap and payment cap.

A loan for which the customer's interest rate is "locked in" for a certain period of time. At the end of that period, the interest is adjusted to reflect the bank's current rate of interest. The new monthly payment incorporates that adjustment. (Also called a variable rate mortgage.)

Is a mortgage in which the interest rate is adjusted periodically based on a pre-selected index, and margin that is added to the index, to determine the rate upon the date of adjustment. Usually a one year term, with a cap on each adjustment, and a lifetime overall cap.

An adjustable-rate mortgage loan is classified as a loan with a fluctuating interest rate. In other words, the interest rate shifts up and down as market conditions change. Typically, an ARM will afford a lower initial interest rate, but your mortgage payments may change (usually semiannually or annually).

A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Interest rate and payments fluctuate to match current market interest rates.

A mortgage in which the interest rate changes periodically in relation to an index. Payments may increase or decrease accordingly. Also known as the renegotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.

Mortgage in which the rate of interest is adjusted based on a standard rate index. Most ARMs have a cap on how much the interest rate may increase.

A variable rate mortgage with an interest rate that adjusts periodically. This interest rate will adjust to a rate equal to the "margin" plus the financial index that your loan is based upon.

A loan that allows the lender to adjust the borrower's interest rate and payments at specified times and within specified limits. Below-market starting interest rates are typical.

The interest rate on this mortgage changes each term in good times and bad. This is a good mortgage to have if you don't plan to stay in your home forever. (aka, variable rate mortgage.)

A mortgage linked to a financial index in which monthly payments can vary over the course of the loan, usually 25 or 30 years.

A mortgage with an interest rate that changes periodically,according to an "index", such as Treasury Bills. Monthly payments cango up or down when the rate is adjusted.

Also known as a variable rate mortgage, the interest rate on this mortgage changes each term in good times and bad. This is a good mortgage to have if you don't plan to stay in your home fo

A mortgage whose rate of interest is set for a period of time, and then becomes open for changes according to a predetermined financial index. There is generally a maximum amount that the rate may increase both in a year's time and for the life of the loan.

A mortgage loan which bears interest at a rate subject to change during the term of the loan.

An adjustable (variable) rate mortgage loan has interest rates that are adjusted periodically based on changes in a selected index. As a result, your monthly payment may increase or decrease as result of changes in the overall interest rates.

A mortgage with an interest rate that periodically adjusts, up or down with the movement of a specified index.

A home loan where the interest rate can go up or down at certain periods stated in the loan document during the time you are repaying the loan.

Is a mortgage in which the interest rate is adjusted periodically based on a preselected index and time adjustment (1 month, 6 months 1 year). Also sometimes known as the variable rate mortgage. See One Year Adjustable.

A mortgage in which the interest rate fluctuates during the life of the loan according to general economic conditions. A financial "index" is the basis that the lender uses to determine changes in the interest rate. There is typically a "cap" or limit on how much the interest rate can change annually and over the life of the loan.

A mortgage where the interest rate fluctuates over the life of the loan. Back to Glossary Index

Is a mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Also known as a renegotiable rate mortgage, variable rate mortgage or a Canadian rollover mortgage.

Also known as a variable rate mortgage. This is a type of mortgage where the interest rate changes periodically. As a result, the principal and interest payments may vary over the life of the loan. This is because the loan is linked to a financial index. The lower initial payments may make it easier for buyers to qualify.

A mortgage with an interest rate that is periodically adjusted up or down, depending on a specific index.

An adjustable-rate mortgage (ARM) means the interest rate changes over the life of the loan â€“ according to the terms specified in advance.

Is a mortgage in which the interest rate is adjusted periodically based on a pre selected index. Also sometimes known as the renegotiable rate mortgage, the variable mortgage or the Canadian roll over mortgage.

Mortgage where the interest rate adjusts periodically up or down through a set index. Also called a floating rate mortgage.

A mortgage loan which adjusts to changes in interest rates. As rates change, ARM monthly payments increase or decrease determined by the lender, but generally subject to a maximum/cap.

a mortgage tied to an index that adjusts based on changes in the economy.

A mortgage in which the interest rate is adjusted periodically according to a preselected index. Payments may go up or down accordingly.

A mortgage on which the 'interest' rate charged may change, up or down, according to a predetermined index.

Also known as a Variable Rate Mortgage, a loan secured against land which has an interest rate that changes according to some outside index -- such as the federal prime rate or the interest rate paid on government bonds -- over the term of the mortgage. The change in interest rate will result in a change in the periodic payments due under the mortgage.

Mortgage interest rate that can change at designated intervals based on a financial index.

A loan with an adjusted interest rated determined by a pre-selected index.

A mortgage with an interest rate that changes over time in line with movements in a particular index.

A mortgage loan subject to changes in interest rates; when rates change, ARM monthly payments increase or decrease at intervals determined by the lender; the change in monthly payment amount, however, is usually subject to a cap.

Type of loan whose prevailing interest rate is tied to an economic index (ie one-year Treasure Bills), which fluctuates with the market. There are three (3) types of ARMs â€“ one-year ARMs, which adjust every year; three-year ARMs, which adjust every three years; and five-year ARMs, which adjust every five years. When the loan adjusts, the lender tracks a margin onto the economic 9ndex rate to come up with your loan's new rate. ARMs are considered far riskier than fixed-rate mortgages, but their starting interest rates are extremely low, and in the past five to ten years, people have done very well with them.

A loan by which the monthly payment may adjust (increase or decrease) over the life of the loan based upon the loans interest rate index, margin, etc. ARMs are tied to indices such as a one-year Treasury note or 6 month Treasury bill. The adjustment periods vary, for example every 6 months or once per year, depending on the terms of the loan.

This is a mortgage rate that is variable. It changes every so often, depending on the current fluctuation of market conditions.

A mortgage that changes interest rate periodically according to a pre-selected index. The 3 most popular are based on the 1 Year Treasury Bill, the Cost of Funds Index (COFI) and the London InterBank (LIBOR). There is a new index, the Cost of Savings Index (COSI) that is extremely stable and offers many benefits to the savvy home owner.

A mortgage that permits the lender to adjust its interest rate periodically on the basis of changes in a specified index.

The Adjustable Rate Mortgage or ARM is a mortgage in which the interest rate is adjusted periodically based on a pre-selected index. The index is for example the one-year treasury, CD rates or even cost of funds as measured in a defined geographical area. Also referred to as the variable rate mortgage.

A loan that has an interest rate which changes periodically based on the sum total of an index plus a margin.

Refers to a mortgage with has a note rate that fluctuates during the life of the loan based on an index and specified parameters, such as margins, caps, etc.

Loans where interest rates go up or down, usually annually. Advantages: Initial rate generally lower than on a fixed rate mortgage; limits on how much a rate can go up at one time; buyers can qualify for larger loan amounts. Good for buyers whose income should grow and who plan to move in a few years.

Loans with interest rates that are adjusted periodically based on changes of a pre-determined index. The index is based on market rates such as Treasury bills and prime rates. The ARM has an interest rate cap that limits the amount the interest rate can change.

A mortgage with and interest rate that fluctuates according to the movements of a predetermined index. There are several types of ARM's, some change quicker than others, but all have a ceiling cap.

A mortgage for which the interest rate and the payments may change over the life of the loan. WHEDA does not offer adjustable rate mortgages. (See Fixed Interest Rate.)

A mortgage on which the interest rate, after an initial period, can be changed by the lender. ARMs base rate changes on a preselected interest rate index over which the lender has no control. These are indexed ARMs. There is no discretion associated with rate changes on indexed ARMs.

A mortgage on which the interest rate may be adjusted up or down based upon a change in a readily verifiable index. Rate adjustments may be implemented through changes in the payment amount, in the outstanding loan balance or in the term of the loan.

A mortgage loan with an interest rate that fluctuates in accordance with a designated market indicator--such as the weekly average of one-year U.S. Treasury Bills--over the life of the loan. To avoid constant and drastic fluctuations, ARMs typically limit how often and by how much the interest rate can vary.

A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Sometimes known as a re-negotiable rate mortgage or a variable rate mortgage.

also known as variable-rate mortgages, usually offer a lower initial interest rate than fixed-rate mortgages. Several types of adjustable rate mortgages are available to meet your specific needs. Rates can adjust either up or down depending upon current market conditions and predetermined "caps" are placed upon these loans so buyers can plan well into the future.

The rate is based on a market index, which fluctuates with market conditions plus a margin to determine the actual interest rate. This total interest rate normally has both a short-term (semi-annual or annual) and lifetime "cap," or limit.

A loan that allows the interest rate to periodically be adjusted up or down, depending on a specified financial index.

A mortgage that allows periodic adjustments of the interest rate in keeping with a fluctuating market. The loan rate is tied to an external money market indicator, or index such as the Wall Street Journal prime rate or the 90-day Treasury bill rate. The loan rate and the monthly payment fluctuates, based on changes to the index rate and the term agreed upon in the note.

A loan where the rate of interest is tied to a specific financial index, with both the rate of interest and the monthly payments subject to change at established adjustment intervals.

A mortgage loan or deed of trust which allows the lender to adjust the interest rate in accordance with a specified index periodically and as agreed to at the inception of the loan.

A mortgage where the lender is able to change the interest rate periodically throughout the term of the loan. For more information see Adjusted Rate Mortgage.

Also referred to as a Variable Rate Mortgage. A mortgage in which the interest rate is adjusted periodically based on a pre-selected index.

A mortgage on which the rate of interest, and therefore the size of the monthly payment, is adjusted up and down in line with movements in interest rates.

Disclosure Mortgage Insurance Premium(MIP)

A loan in which the interest rate is periodically increased or decreased to reflect changes in the cost of money; commonly called an ARM.

A type of mortgage in which the interest rate adjusts from time to time according the current market rate. Monthly mortgage payments can increase or decrease over the life of the loan. Also known as the renegotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.

Mortgage in which the rate of interest is adjusted based on a standard rate index. Most Adjustable Rate Mortgages have caps on how much the interest rate may increase.

A mortgage with an interest rate that changes over time according to the index it is tied to.

This is a loan to buy property. The loan has an interest rate that can go either up or down, based on a certain formula. Most of the time, the formula is tied to the Federal Reserve System. So, if the Federal Reserve's interest rate goes up, your interest rate goes up and vice versa. People like ARMs because the starting interest rate is often lower than fixed rates. But, they can also climb pretty high. Read your mortgage contract and ask questions.

A type of mortgage where the principle and interest payments may vary over the life of the loan. This is because the loan is linked to a financial index. The lower initial payments may make it easier for buyers to qualify. Typically ARMS have an initial fixed period and then adjust after the term of the initial fixed period has passed (e.g., a 2/28 Is fixed for a period of 2 years, at the end of the 2 year period the interest rate may adjust).

An ARM Loan (Adjustable Rate Mortgage) is a loan type that allows the lender to adjust the interest rate during the term of the loan. Generally, these changes are determined by a margin and an index so that the interest rate changes, up or down, are based on the market conditions at the time of the rate change. Most often the interest rate changes are limited by a rate change cap and a lifetime cap.

ARM (see also Variable Rate Mortgage) A mortgage with an interest rate that changes periodically, an ARM is also known as a variable rate mortgage. Interest rates may move up or down, as market conditions change.

Adjustable mortgage loan (AML), or a variable rate mortgage (VML). This is a mortgage whose interest rate fluctuates with the cost of money.

Mortgage loans in which the interest rate is adjusted periodically based on predetermined factors such as an assigned index or designated market factor (such as the weekly average of US Treasury Bills over a one-year period). There is typically a limit to how often and by how much the interest rate can fluctuate. Also known as renegotiable rate mortgages or variable rate mortgages. The adjustment date is the date the interest rate changes. The adjustment interval (or adjustment period) is the time between changes in the interest rate and/or the monthly payment (typically one, three or five years).

The interest rate on this mortgage rises and falls with changes in certain published indexes such as the Prime Rate, treasury notes, etc. An ARM may start out with a lower interest rate for a certain period of time, after which your mortgage payments may adjust periodically (adjustment period). There is usually a cap as to how high the rates can rise over the life of the loan, typically one year, three years or five years.

A mortgage with an interest rate that could move up and down over the life of the loan

An Adjustable Rate Mortgage (ARM) is a type of loan where the interest rate and monthly payment are fixed for an initial time period such as one, three, five, seven or more years. After the initial "fixed" period, the interest rate can change every year. An ARM is commonly selected when buyers expect their incomes to increase during the loan period or if they do not expect to stay in their homes a long time.

A mortgage without an expressed fixed rate. This kind of mortgage has a rate that adjusts up or down according to some specified economic index. Also called a variable-rate mortgage (VRM).

A loan in which the interest rate is adjusted periodically based on changes in a pre-selected index. Based on the index fluctuations, the rate and payments on an ARM loan rise and fall with the market.

A mortgage with an interest rate that floats up or down, depending on the current market, which may cause the monthly payment to adjust up or down accordingly.

A loan whose interest rate is adjusted according to movements in the financial market.

a mortgage loan with interest rate and payments that vary throughout the loan life. The interest rate usually start with a low percentage and gradually increases. The percentage rate is determined by various known indexes.

Loans that usually start with an interest rate lower than 15 or 30 Year Fixed Mortgage loans. On ARMs interest rates will change based on a specific index.

A loan whose interest rate can change according to a formlula over the life of the loan.

A mortgage where the interest rate changes during the life of the loan in line with movements in an rate. You may also see ARM's referred to as AML's or VRM's.

A type of mortgage loan on which payments may be adjusted as frequently as each month based on changes in the ARM interest rate index. (Each individual contract may stipulate interest rate limits and frequency of payment adjustments, known as caps.)

A mortgage on which the interest rate, after an initial fixed period adjusts periodically based on a specified index (LIBOR, COFI, Prime Rate). Typical initial fixed periods are for 1 year, 3 years or 5 years. A predetermined margin is added to the index to compute the interest rate. Also called a Variable Rate Mortgage.

A mortgage in which the interest rate is not fixed but is tied to an index and is periodically adjusted as the rate index moves up and down. The initial rate is lower than the fixed rate mortgage. Such ARMs commonly provide for an option to convert to a fixed rate mortgage.

Is a mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Also sometimes known as tile renegotiable rate mortgage or the variable rate mortgage.

A mortgage in which the interest rate is adjustable, meaning that the rate can go up or down, periodically, based on a pre-selected index. Often that index is the prime interest rate.

A mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent to the index value plus a predetermined spread, or margin, over the index, usually subject to per-interval and to life-of-loan interest rate and/or payment rate caps.

A type of mortgage rate loan whose interest rate changes periodically up or down, usually once or twice a year. Amortization: Gradual debt reduction. Normally, the reduction is made according to a predetermined schedule for installment payments.

A type of home loan in which the interest rate and monthly payment may be adjusted periodically according to a preselected index (see Index); also referred to as a variable rate mortgage or an adjustable mortgage loan.

These loans feature periodic interest rate and payment changes.

Adjustable rate mortgages are designed to keep your starting mortgage payments affordable. Shorter term adjustable rate mortgages offer the advantage of lower initial interest rates. Longer term ARMs offer more payment stability. If you plan to own your home for 3-5 years, a shorter term ARM may be right for you. On the other hand, if you plan on staying in your home for several years, longer than seven years, than the longer term ARMs would be more appropriate. Most ARMs contain specific consumer safeguards such as interest rate caps, which limits the level the interest rate can rise.

A mortgage that changes interest rate periodically based upon the changes in a specified index.

A mortgage with a fluctuating interest rate usually limited to one adjustment each year. There are a set number of maximum increases over the life of the loan, with the fluctuating rate based on a national index.

A mortgage loan whose interest rate fluctuates according to the movements of an assigned index or designated market indicator--such as the weekly average of one-year US Treasury Bills--over the life of the loan. To avoid constant and drastic fluctuations, ARMs typically limit how often and by how much the interest rate can vary.

is a mortgage where the interest rate, and generally the payments, may change over the life of the loan. The interest rate is adjusted to match the rise or fall of a pre-selected interest rate index, and the regular monthly payments increase or decrease accordingly. The initial rate of an ARM is lower than a fixed rate mortgage which lets the borrower buy more house for the same monthly payment. The trade-off is the risk of higher payments later on. ARMs payments may be fixed for a period up to seven years before they begin adjusting. The frequency of adjustments, the limit for each adjustment and the maximum amount of adjustment varies from mortgage to mortgage.

monthly mortgage loan in which the installments are varied as the interest rate is periodically adjusted based on an index; the margin stays the same; same as Variable Rate Mortgage.

A mortgage in which the interest rate is adjusted periodically based on an index. Also called a variable rate mortgage.

This type of mortgage has an interest rate that will change over time. Typically the interest rate will be lower than fixed mortgage products.

A mortgage where the rate changes over time in line with movements in an index. ARMs are also referred to as AMLs (adjustable mortgage loans) or VRMs (variable rate mortgages).

A type of mortgage where the interest rate is only fixed for a specific time period (usually 1, 3, 5, 7, or 10 years), after which it will be tied to an index (LIBOR and Prime Rate are two such indices) and adjust accordingly. Payments increase or decrease monthly or annually based on the adjusting interest rate. An ARM transfers some risk to the borrower from the lender, so to offset this shift, the initial fixed rate is often percentages lower than the average long term fixed rate. They also usually come with an adjustment "cap" or "ceiling" which acts as a maximum threshold for how high your interest rate can rise. If you plan on staying in your home for a short period of time (a few years) or if you expect a large increase in income in the future, an ARM is probably the best choice. Also, for individuals taking out loans when interest rates are high, an adjustable rate mortgage would allow an individual to take advantage of lower rates in the years to come.

A mortgage with an interest rate that changes over time in line with movements in the index. ARMs are also referred to as AMLs (adjustable mortgage loans) or VRMs (variable rate mortgages).

A home loan with an interest rate that periodically adjusts to reflect changes in a specified financial index.

A loan for which t

Mortgage agreement between the credit union and a real estate buyer stipulating predetermined adjustments of the interest rate at specified intervals.

A mortgage loan in which the interest rate is subject to periodic adjustment up or down according to the movement of a pre-arranged index.

Mortgage in which the interest rate is periodically adjusted based on the movement of a preselected index.

Also known as an ARM; it is a loan that bears interest at a rate subject to change during the term of the loan.

Any mortgage with an adjustable interest rate during the term of the loan. The interest rate is fixed for a specific period of time and then adjusts to an index rate plus a margin. For example, a 7/1 would be a seven year fixed rate then adjusted every year thereafter.

Also known as an ARM Mortgage in which the rate of interest is adjusted based on a standard rate . Most ARMs have caps on how much the interest rate may increase. Back

A loan in which the interest rate adjusts periodically according to a predetermined index and margin resulting in increased or decreased loan payments. Also called a variable rate loan.

A mortgage with changing interest rates over time according to an index. Also called adjustable mortgage loan or variable rate mortgage

A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Subject to certain limitations, the rate and payments on an ARM loan rise and fall with the market.

Based off a pre-selected index the mortgage interest rate will be changed periodically. (AKA: Canadian rollover mortgage, re negotiable rate mortgage, or variable rate mortgage.)

A mortgage in which the interest rate is adjusted periodically according to a preselected index. Adjustments may occur at different intervals depending upon the loan program. Some adjust yearly while others may stay fixed for a term of one, three, five or seven years then adjust yearly. The terms, adjustment schedule and index that the loan is based upon vary by loan program. To protect the borrower, "caps" are put into place to limit the amount of payment adjustment.

A mortgage where interest rates will fluctuate with changes in the market. As rates increase in the indexes, the mortgage interest rate will also increase, and vice versa. ARMs will generally have a maximum rate to protect the borrower from dramatic rate increases.

A mortgage with an interest rate that changes over time tied to a particular index.

The total finance charge (interest, loan fees, points) expressed as a percentage of the loan amount.

An interest rate that can change periodically. As rate move up and down the rate on your mortgage can also go up and down during the term. As a result the monthly payment can also rise and fall with the change in interest rates. The most common type of variable rate mortgage (VRM) is prime rate less .9%.

A mortgage whose interest rate changes over time based on an index and a margin. Rate changes are made at prescribed times and within prescribed limits (caps) as defined in the mortgage contract.

Mortgage with an interest rate that can change as often as specified in the loan agreement.

A mortgage with an interest rate and payment that change periodically over the life of the loan based on changes in a specified index.

A loan secured by a mortgage on real estate property that has a variable interest rate that can be changed over the term of the loan which may result in higher or lower monthly payments of principal and interest.

A mortgage in which interest and payment rates vary periodically, based on a specific index, such as 30-year Treasury Bills or the Cost-of-Funds index.

Is a mortgage refinance loan in which the interest rate is adjusted periodically based on a preselected index. Also sometimes known as the, the variable rate mortgage refinance loan.

An Ajustable Rate Mortgage ( ARM) is a mortgage instrument in which the interest rate of the mortgage adjusts periodically according to a pre-determined index and margin.

A loan that has a rate of interest tied to a specific financial index with both the rate of interest and monthly payments subject to change at established adjustment intervals.

A loan with an interest rate that is periodically adjusted to reflect changes in a specified financial index.

A mortgage with rates and terms that can change. The adjustable rate loan has become commonplace, with allowable ranges as to time intervals, percentage of increase or decrease and total increases or decreases likely to change as market conditions change.

A type of mortgage program with an interest rate that changes periodically based on the changes in a specified index. Common ARM programs are 1-,3-,5-,7-, and 10-year ARMs.

This loan is originated at an initial interest rate then fluctuates up or down during the remaining term of the loan based on a pre-selected index (usually U.S. Treasury securities). These loans have annual and lifetime interest rate caps.

a mortgage in which the interest rate is adjusted periodically (typically yearly), based upon a pre-selected and contractually agreed upon rate of increase, usually based upon an identified index. It is sometimes known as a "renegotiable rate mortgage" or a "variable rate mortgage."

A loan that has a fluctuating interest rate and monthly payment. ARMs start off with a fixed interest rate and monthly payment, but then adjust to reflect changes in the market interest rate. A 1-year ARM, for example, will have a fixed interest rate for 1 year and then will adjust on the second year, and continue to adjust annually over the life of the loan. You can also find ARMs that adjust semi-annually and monthly. You get a low starting interest rate in exchange for taking a risk that rates may rise in the future. There's also a cap on how much the interest rate can go up or down. Be well-armed -- before you choose this type of mortgage, figure out if you can afford the highest payment at the maximum interest rate. Other common ARMs are: 3/1, 5/1, 7/1 and 10/1.

A mortgage in which the interest rate can fluctuate based on a stated index during a stated time period, typically with a low initial rate.

An adjustable rate mortgage (ARM) is a loan type that allows the lender to adjust the interest rate during the term of the loan. The rate and payment adjustments are calculated based on a margin and an index. The index used is based on the loan program, and could be a Treasury Bill, LIBOR, COFI or other market index. ARM’s have caps (maximums), both annual and lifetime on your rate payment can change.

A loan that allows the interest rate, and usually the payment, to adjust periodically during the life of the loan. Amortization: The continuous regular payment of a set amount on a loan, which will reduce and pay it off in a given period of time.

A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. You may also see ARMs referred to as AMLs (adjustable-mortgage loans) or VRMS (variable-rate mortgages.)

Also called an ARM or adjustable, this type of mortgage typically starts off with a lower "teaser" interest rate that stays fixed for a specified time, then adjusts periodically depending on changes in the market interest rate.

A loan that allows the interest rate to change periodically. These changes, up or down, are linked to changes in a financial index, such as Treasury bills. Some ARMs have a cap on interest rate increases.

A mortgage in which the interest rate is adjusted periodically based on a preselected index. So, interest rate and payments rise and fall with the market.

An ARM is different from a traditional fixed rate mortgage since the interest rate fluctuates during the lifespan of the loan in conjunction with movements in the index rate.

ARM Mortgage loans for which the interest rate adjusts on specific dates - such as monthly, every 6 months, annually. The rate is stated as a margin over a published index such as the 10 year treasury or the 11th district cost of funds index.

A mortgage in which the interest rate is adjusted periodically according to a preselected index. The terms, adjustment schedule and index to be used can vary based on the particular lender.

Also called a variable rate mortgage. A mortgage in which the interest rate is adjusted periodically, usually at intervals of one, three, or five years, based on a measure or an index, such as the rate on US Treasury bills or the average national mortgage rate. In exchange for assuming some of the risk of a rise in interest rates, a borrower receives a lower rate at the beginning of an ARM than if he or she had taken out a fixed-rate mortgage.

A type of real estate loan in which either the interest rate charged or the length of the loan, or both, can change. This type of loan forces the Borrower to absorb the uncertainty of changes in interest rates during the life of the loan. All ARM loans are tied to some index such as government securities. Also called variable rate mortgages.

Adjustable rate mortgages, or ARMs, usually start with a lower fixed rate, and then adjust according to a specified index after an initial period. ARM terms can be 3/1, 5/1, 7/1, 10/1 and a handful of other options. The first number indicates how many years the interest rate is fixed, and the second number indicates how often the rate adjusts after that initial period is over. For example, in a 7/1 ARM, your interest rate stays the same the first seven years, and then adjusts every year following up to a capped rate previously agreed upon.

A mortgage in which the borrower pays an initially low rate for a specific period of time (1,3,5,7, or 10 years) before yearly adjustments begin. After the introductory period, your new rate will be adjusted by taking the lenders margin rate and adding it to a predetermined index value. On most ARM loans, the amount that your interest rate can change at each adjustment period will be limited by an interest rate cap.

A mortgage that has an initial rate that has an Adjustment Interval (as determined by the lender) in accordance with a current interest rate index (a predetermined margin is added to the index to compute the interest rate). Payments can be low if interest rates are low and will increase as rates rise. Caps govern the limit the loan's rate can adjust to at one time and over the life of the loan. Generally, ARMs have lower rates than fixed-rate mortgages and are easier to qualify for - but because they're based on changing interest rates, your payment amounts can be unpredictable. ARM types include Two-Step, Convertible, the Variable Rate Mortgage or the Canadian rollover mortgage.

Loans with a periodically adjustable interest rate, reflecting the changes in a specific financial index. ARMs are typically offered with 1, 3, or 5 year periods before the rate can change.

A type of mortgage rate loan that allows the interest rate to change periodically up or down, usually once or twice a year.

Loan with an interest rate that changes periodically in accordance with a specified index.

a mortgage loan with an interest rate that changes periodically to reflect changes in a specified financial index. ARM monthly payments increase or decrease at intervals determined by the lender; the Change in monthly -payment amount, however, is usually subject to a Cap.

the interest rate of the mortgage payment based on current interest rates at time of payment rather than a fixed rate —˜—¦•Ï“®i'²®jŒ^'

A mortgage, which allows the lender to adjust the mortgage's interest rate periodically on the basis of changes in a specified index. Interest rates may move up or down, as market conditions change. The change in interest rate will result in a change in the periodic payments due under the mortgage. back

A mortgage in which the Interest rate is adjustable, meaning that the rate can go up or down according to prevailing financial market conditions.

An adjustable rate mortgage (ARM), variable rate mortgage or floating rate mortgage is a mortgage loan where the interest rate on the note is periodically adjusted based on an index.Wiedemer, John P, Real Estate Finance, 8th Edition, p 99-105 This is done to ensure a steady margin for the lender, whose own cost of funding will usually be related to the index. Consequently, payments made by the borrower may change over time with the changing interest rate (alternatively, the term of the loan may change). This is not to be confused with the graduated payment mortage, which offers changing payment amounts but a fixed interest rate.

Adjusted Basis