Adjustable Rate Mortgage

# 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 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 US Treasury securities.

# 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 mortgage that permits the lender to adjust its interest rate periodically on the basis of changes in a specified 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 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 where the interest rate is not fixed, but changes during the life of the loan, in line with movements of the index rate.

# 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.

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

# 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 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 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 risk of the rising or falling market.

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

# (ARM): This has also been called a variable rate mortgage. This is a mortgage whose interest rate changes at specific times stated in the note. This rate change is based on the original note rate and an index and a margin. The rate changes are made at prescribed times and within prescribed limits (also called caps) as defined by the note and any attachments to the note.

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

# 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. ...

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

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

# (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 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 whose interest rate changes periodically based on the changes in a specified index. 3/1, 5/1, 7/1 and 10/1 are ARMs in which rate is fixed for three-year, five-year, seven-year and 10-year periods, respectively, but may adjust annually after that.

# A mortgage loan that has an adjustable rate.

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

# Loan whose interest rate is adjusted according to movements in the financial market. Many offer lower-than-market initial Interest rates that rise only gradually for the first few years.