An adjustable-rate mortgage, or ARM, is a home loan with an interest rate that can change periodically. This means that the monthly payments can go up or down.

Even if ARM is considered as one of the most beneficial mortgages, it is still a mortgage, and it might not always be suitable for everyone. So, before making the decision, you need to find out Adjustable rate mortgage definition first so you can judge whether it is the type of mortgage that will benefit you or not.

"At the end of the day, the big question is whether the borrower will have the options to borrow – with a fixed rate mortgage or an adjustable rate mortgage – [that] they. Regulators are working on.

Adjustable-rate mortgage definition, a mortgage that provides for periodic changes in the interest rate, based on changing market condtions. Abbreviation: ARM See more.

5 2 5 Arm DOC Summary: Multistate Adjustable Rate Note – ARM 5-2 – 2. Lenders should insert in the first blank of the first sentence in Section 4(D). Limits on Interest Rate Changes an interest rate that is equal to the sum of the initial start rate for the mortgage and the applicable annual interest rate adjustment cap (which is 2% for ARM Plans 651, 720, and 721).

Fannie Mae has posted an authorized change in its Instructions for the Illinois Mortgage (Form 3014). The authorized change allows lenders to add either the phrase, “at the rate of %,” at the end of.

An adjustable-rate mortgage, or ARM, has an introductory interest rate that lasts a set period of time and adjusts annually thereafter for the remaining time period. After the set time period your interest rate will change and so will your monthly payment.

Adjustible Rate Mortgage An adjustable rate mortgage, called an ARM for short, is a mortgage with an interest rate that is linked to an economic index. The interest rate and your payments are periodically adjusted up or down as the index changes.

Adjustable-Rate Mortgage – ARM: An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan.

An adjustable rate mortgage (ARM), sometimes known as a variable-rate mortgage, is a home loan with an interest rate that adjusts over time to reflect market conditions. Once the initial fixed-period is completed, a lender will apply a new rate based on the index – the new benchmark interest rate – plus a set margin amount, to calculate the new.

Adjustable Rate mortgage definition. adjusted-rate Mortgage Definition. This is a form of mortgage where the interest rate on the outstanding balance is not constant but varies throughout the life of the loan. The initial rate is first fixed for a period of time, and then it resets periodically.