Definitions for "Conversion Clause"
A provision in an ARM that allows you to change the mortgage to a fixed-rate loan, usually after the first adjustment period.
A provision in some ARMs that allows the ARM to be changed to a fixed-rate loan at some point during the term. The conversion is usually allowed at the end of the first adjustment period. eed of Trust/Mortgage A written legal document which transfers ownership of real estate property from one party to another.
An optional provision of an Adjustable Rate Mortgage allowing the rate to become fixed at a given point during the loan's term, usually at the end of the first adjustment period. This feature may require additional cost, depending on the lender.
Loans that are not made under any government housing program; they are not subject to the restrictions of government housing programs, such as loan size limits.