Glossary of Mortgage Loan Terminology
ARM
Definition
A loan that has a a fixed interest rate for a period of time. At the end of the fixed period the interest rate may increase or decreaseat specified intervals during the life of the loan. The initial rate may be fixed for a period of time followed by changes tied to a financial index. The rate or payment changes are typically governed by change caps.
Synonyms
ADJUSTABLE RATE MORTAGE (ARM)
VARIABLE RATE MORTGAGE
Can't find a term you are trying to understand? We welcome suggestions for missing terms. Send us an inquiry and we'll add it.
