Adjustable rate mortgage (ARM)

Adjustable rate mortgage (ARM),

Definition of Adjustable rate mortgage (ARM):

  1. Home loans where interest rates are adjusted regularly (usually every six months) to reflect current interest rates. The ARM usually limits high or low interest rates and the frequency with which changes can be made. This loan usually starts with a low interest rate (attractive interest rate) to attract the borrowers. Also known as adjusted rate. See also Adjustable Home Loans.

Meaning of Adjustable rate mortgage (ARM) & Adjustable rate mortgage (ARM) Definition