A loan for which the interest rate (coupon rate) is adjusted periodically to reflect changes in a previously selected index rate. ARMs may have caps and floors that limit the annual and/or the lifetime change in the coupon rate.

also called AMLs(Adjustable Mortgage Loans) or VRMs (Variable rate mortgage). A Mortgage where the interest rate may change over the life of the loan in accordance with movements in an index rate. The terms, adjustment schedule and index that the loan is based upon vary by loan program. To protect the borrower, "caps" often limit the amount of payment adjustment. ARMs are also referred to as

Adjustable-rate mortgages (ARMs), are loans that have a fixed interest rate for a set period of time, which later begins adjusting according to terms specified in advance by the lender. The initial interest rate ("start rate") is usually lower than that currently offered with a fixed-rate mortgage, resulting in a lower monthly payment. At predetermined times, the interest rate (and payment) will be adjusted either up or down. The amount of the annual and lifetime adjustments are controlled by the rate caps, ensuring that it can only adjust a certain amount each time, or during the entire loan.

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).

An ARM will have interest rates and payments that change from time-to-time over the life of the loan. Depending on the type of ARM you have, your interest rate may increase gradually every few years until it reaches a preset ceiling. When you apply for an ARM, you'll be told how, when, and why the rates may change.

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

A mortgage tied to an index that adjusts based on changes in the economy. The ARM typically adjusts annually.

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

This is a mortgage with an interest rate that is adjusted periodically to reflect changes in market interest rates. Every ARM is tied to an index (any one of a number of market rates - the Prime Rate is the most common). If the index rate has risen since the last periodic adjustment on the loan, the monthly payment will generally increase. If the index rate has fallen, the monthly payment will generally decrease. An ARM gives you the benefits of lower monthly payments in the initial period of the loan.

A mortgage loan with an interest rate and payments that change periodically over the life of the loan.

A loan with an interest rate adjusted periodically, typically at one-year intervals. One-year ARMs adjust every year, but three-, five- and seven-year ARMs don't adjust until those periods are up, and typically every year after that. The adjustments depend on movements of any number of financial market indexes, including the prime rate.

A mortgage that has an interest rate that can go up or down periodically, usually once or twice a year.

A 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 mortgage or loan whose interest rate changes periodically to keep pace with changes in a specific index.

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

A loan on which the monthly payments will increase or decrease over time, based on changes in the ARM's interest rate index. ARM payments typically are adjusted every six months or once a year. Common indices to which ARMs are tied include the 11th District Cost of Funds, one-year T-note and six-month T-bill.

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

Also known as Variable-Rate Mortgage, one in which the interest rate changes periodically: 3/1, 5/1, 7/1, 10/1 ARM are mortgages in which the rate is fixed for 3, 5, 7, or 10 years and can adjust annually (1) afterward 3/6 or 5/6 ARM are mortgages in which the rate is fixed for 3 or 5 years and can adjust every six months (6) afterward 1-month ARM adjusts each month after the initial payment Option ARM enables borrowers to select a payment type each month; minimum payment, interest-only payment, or fixed amortized payment

(ARM): A mortgage loan in which the interest rate can go up or down based on market conditions. Changes in the interest rate are determined by a financial index.

A mortgage tied to an index that adjusts based on changes in the economy. Also called a variable rate mortgage.

A type of loan with an interest rate that fluctuates with the market. Though ARMs are appealing because their starting interest rates are quite low, they are riskier than fixed-rate mortgages.

A loan pegged to an index; as the index goes up or down, the borrower's interest rate follows according to contractual limits, spelled out in the note and trust deed.

The interest rate is linked to a financial index, such as a Treasury security or a cost of funds - so your monthly payments can vary up or down over the life of the loan - usually 25 to 30 years. Interest rates can change monthly, annually, or every 3 or 5 years. Some ARMs have a cap on the interest rate increase, to protect the borrower.

Also known as a variable-rate loan, usually offers a lower initial rate than fixed-rate loans. The interest rate can change at specified time periods based on changes in an interest rate index that reflects current finance market conditions. ARMs also have caps or a maximum and minimum that the interest rate can change at each adjustment period.

The mortgage-payment rate and loan payments vary. With these mortgages, interest rates start lower than with a fixed-rate mortgage, but then become variable. At specific intervals (typically every year), a lender adjusts the rate up or down as interest rates fluctuate.

A mortgage in which the interest rate is adjusted over time, based on a given index.

A loan in which the interest rate changes periodically in line with an index.

A mortgage where the interest rate is not fixed, but changes periodically during the life of the loan and is in line with movements in an index rate.

This is a mortgage with an interest rate that is adjusted periodically to reflect changes in market conditions. Every ARM is tied to an index. When the interest rates on that index rise, so do the payments on your ARM. An ARM gives you the benefits of lower monthly payments in the initial period of the loan, but the homeowner must be prepared to make higher payments, or to refinance, if rates rise.

A general term for any mortgage in which the interest rate and, generally, the payments change over the life of the loan. The interest rate is adjusted to match the rise or fall of a preselected interest rate index and the borrower's regular payments will increase or decrease accordingly. Different types of adjustable-rate mortgages (ARMs) have different frequencies for these adjustments. Some ARMs have limits on payment and interest rate changes and the maximum interest rate over the life of the loan. To the borrower's advantage, the initial rate of an ARM is usually low, permitting the purchase of real estate that otherwise would be unaffordable with a fixed-rate mortgage. But, there is a risk of higher payments later on. (See Index, Initial Interest Rate.)

An adjustable rate mortgage (ARM) is one in which the interest changes periodically, according to corresponding fluctuations in an index.

Adjustable rate mortgages are called ARMs for short. The lender changes the interest rate periodically in accordance with the loan agreement. For example, the loan agreement may say that the rate on a 1-year ARM is reset every Sept. 1 after an initial period of three years. The interest rate is calculated by adding a margin to an index rate. If the margin is 3 percentage points and the yield on the 1-year bill (assumed to be the index rate) is 6%, the loan rate is reset to 9%. ARM loans usually have provisions that limit how much the loan rate can increase at one resetting and over the term of the loan.

A mortgage in which the interest rate increases or decreases over the life of the loan based on market conditions, resulting in possible changes in monthly payments. Some plans have rate or interest ``caps'' that limit the amount your interest rate may change. This loan, which has many variations, generally carries a lower initial rate than a fixed-rate loan because the borrower assumes the risks of the rising, or falling, market. It becomes more popular when rates rise.

A loan characterized by a fluctuating interest rate, usually one tied to a bank or savings and loan association cost-of-funds index.

A mortgage in which the interest is not fixed but changes periodically, according to corresponding fluctuations in an index.

A mortgage in which the interest rate changes periodically, according to changes in a corresponding index.

A mortgage loan where the interest rate is adjusted based on a standard rate index.

The distinguishing characteristic of an ARM is that its interest rate will change during the life of the loan, based on the performance of an index. Interest rate adjustments are made by the lender or mortgage servicer according to a schedule that is set at loan closing. With each change, the borrower's monthly payment may go up or down. The interest rate and the monthly mortgage payment are adjusted, based on interest rates in the market at the time of the ARM adjustment, at established intervals.

a mortgage with an interest rate that changes periodically, according to an that is selected when the mortgage is issued, plus a margin that remains constant. Although the initial interest rate may be lower than that of a fixed-rate mortgage, the monthly payments can go up or down when the rate is adjusted.

With adjustable-rate mortgages (commonly called ARMs), the interest rate changes over time according to terms specified in advance by the lender. The initial interest rate is usually lower than that offered with a fixed-rate mortgage. This means that the monthly repayment amount would also be lower. At predetermined times, the interest rate will be adjusted either up or down. Consequently, the monthly payment amount will also increase or decrease. Even though the interest rate is subject to change, most adjustable-rate mortgage programs offer the protection of a "rate cap," which limits the amount the rate can be increased each year and over the life of the loan.

A mortgage that provides for a periodic adjustment of the interest rate based on current market conditions.

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

A mortgage in which the interest rate can be changed or adjusted by the lender based on a preselected rate index. ). Payments can be low if interest rates are low and will increase if rates rise.

A mortgage whose interest rate changes periodically based on the changes in a specified index. a list of common indices.

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 under which the lender may change the interest rate periodically on the basis of changes in a specified index.

A home loan in which the interest rate is changed periodically based on a standard financial index. Most ARMs have caps on how much the interest rate can rise or fall.

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 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).

Mortgage that permits the lender to adjust the interest rate periodically based on movement in a specified index.

A loan with an interest rate that can move up or down with national interest rates, instead of being fixed at one rate over the life of the loan.

Also known as a variable-rate loan, usually offers a lower initial rate than fixed-rate loans. The interest rate can change at specified time periods based on changes in an interest rate index that reflects current finance market conditions, such as the LIBOR index or the Treasury index. The ARM promissory note states maximum and minimum rates. When the interest rate on an ARM increases, the monthly payments will increase and when the interest rate on an ARM decreases, the monthly payments will be lower.

A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.

A loan with an interest rate that changes periodically in keeping with a current index. Typically ARMs don't jump more than two percentage points per year or six points above the staring point.

Home loan in which the interest rate is changed periodically based on a standard financial index. Most ARMs have caps on how much an interest rate may increase.

A mortgage that permits the lender to periodically adjust the interest rate during the life of the loan, based on the fluctuation of an index. Lenders may charge a lower interest rate for the initial period of the loan. Most ARMs have a rate cap that limits the amount the interest rate can change, both in an adjustment period, and over the life of the loan. Also called a variable-rate mortgage.

A mortgage loan with an interest rate subject to change over the term of the loan. The interest rate is tied to the performance of a specified market rate, such as the cost of funds index calculated by the 11th District of the Federal Home Loan Bank Board, or the yields on one-year or six-month U.S. Treasury securities.

A mortgage with a variable interest rate that changes during the term of the loan. The variable rate is linked to a published index.

A mortgage with an interest rate that changes periodically based on the changes in a specified index.

A mortgage loan where the interest rate is not fixed for the entire term of the loan, and is adjusted periodically based on an index agreed to at the inception of the loan. This loan is also called a variable rate mortgage (VRM).

A type of loan whose prevailing interest rate is tied to an economic index, which fluctuates with the market. There are three types of ARMs, including 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 tacks a margin onto the economic index 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.

A mortgage in which the interest rate is periodically readjusted to a base rate. For example a one-year ARM is reset once a year, on a prescribed date, to the current level of the base rate plus a margin. For one-year ARMs, the base rate is often the one-year U.S. Treasury bill yield, adjusted for a constant maturity.

A loan whose interest rate is adjusted according to movements in the financial market. Because the initial interest rate is often lower for an adjustable-rate loan, the monthly payments during the first few years may be lower than a fixed-rate loan.

A mortgage where the interest rate changes periodically based on the changes in a specified index.

a mortgage where interest rate changes based on a specified index at predetermined intervals.

A loan with an interest rate that changes with market conditions on pre-determined dates.

A mortgage with an interest rate that is periodically adjusted by the lender based on a specified index. Also known as a variable rate mortgage. These types of mortgage products typically start with a lower interest rate, then the interest rate may move up or down as market conditions and the index change.

(ARRI). A financing technique in which the lender can raise or lower the interest rate according to a set index, such as the rate on six-month Treasury bills or the average cost of funds of FDIC-insured institutions. (See also amortized mortgage. )

A mortgage loan in which the interest rate may be adjusted periodically, following the rise or fall of interest rates as measured by a published index. Most ARMs specify the frequency of rate adjustment (the "adjustment period"), and "caps" -- limits to the amount of rate change in any single adjustment, and to the maximum interest rate allowed during the life of the loan.

A mortgage loan that allows the lender to periodically adjust the interest rate in accordance with corresponding changes in a specified index (such as the prime rate) agreed to at the inception of the loan.

A mortgage in which the interest rate is adjusted periodically, based on a preselected index. It is also sometimes known as a renegotiable-rate mortgage or a variable-rate mortgage.

A mortgage having an interest rate that can change at designated intervals, based on a financial index.

A mortgage in which the interest changes periodically, according to the index it's tied to.

This loan type that allows the lender to adjust the interest rate during the term of the loan. Usually changes are based on market conditions and determined by an index. Most have a rate change and lifetime cap.

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

A mortgage whose interest rate changes over time based on an index.

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

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 for fixed-rate mortgages, but monthly payments can go up or down when the rate is adjusted.

A mortgage in which the interest rate (and therefore the monthly payment) can fluctuate up (or down) during the life of the loan. Depending on the specific loan terms, your interest rate may change every six or twelve months. Because the initial interest rate is often lower for an adjustable-rate loan, the monthly payments during the first few years may be lower than a fixed rate loan. Some homebuyers prefer the adjustable mortgage if they do not expect to stay in the home for more than a few years, or if they think interest rates are heading down.

An ARM is a mortgage whose interest rate changes periodically, based on the changes in a specified index.

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

Also known as a variable-rate loan, an ARM usually offers a lower initial rate than a fixed-rate loan. The interest rate can change at a specified time, known as an adjustment period, based on a published index that tracks changes in the current finance market. Indexes used for ARMs include the LIBOR index and the Treasury index. ARMs also have caps or a maximum and minimum that the interest rate can change at each adjustment period.

A mortgage loan on which interest rates are adjusted at regular intervals according to predetermined criteria. An ARM's interest rate is tied to an objective, published interest rate index.

Mortgage whose interest rate is not fixed for the life of the mortgage but varies in a predetermined way with movements in a specified market interest rate.

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).

A mortgage that allows the lender to adjust its interest rate at specific intervals based on changes in an established index.

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 home mortgage with interest rates that moves up and down over time, based on changes in market interest rates. The upside to an ARM is that lenders charge a lower rate for such loans because you are taking on some of the interest rate risk. This makes your monthly payments lower — at least in the beginning. such loans provide a way for many buyers to afford a larger loan amount for a given monthly payment. An adjustable works out wonderfully if rates drop — something you should never count on. But watch out if interest rates rise. Compare to Fixed-rate mortgage.

A mortgage whose interest rate changes periodically based on the changes in a interest rates in general. Usually tied to a specific rate index.

A loan with an interest rate that changes periodically in keeping with a current index, like one-year treasury bills. Typically, however, ARMs can not jump more than two percentage points per year or six points above the starting rate.

A mortgage with interest rates that may fluctuate based on market conditions; the lender is permitted to adjust the mortgage's interest rate periodically, though most ARM's are limited in the amount that the interest rates can vary

A mortgage loan where the interest rate is not fixed for the entire term of the loan, and can change during the life of the loan in line with movements of an index rate.

A mortgage in which the interest rate changes in accordance with changes in a specified rate index.

Loan whose interest rate is changed periodically to keep pace with current levels.

A mortgage or home equity loan in which your interest rate and monthly payments may change periodically during the life of the loan, based on the fluctuation of an index. Lenders may charge a lower interest rate for the initial period of the loan. Most ARMs have a rate cap that limits the amount the interest rate can change, both in an adjustment period, and over the life of the loan. Also called a variable-rate mortgage.