Posted on

Definition Adjustable Rate Mortgage

Back to Glossary Terms. adjustable rate mortgage (arm) A mortgage with an interest rate that can change during the term of the loan. The timing and calculation of adjustments (also called resets) are determined by the loan program, and these details are disclosed in the mortgage documents.

5 1 Adjustable Rate Mortgage Definition In fact, since "crash" has a precise definition, we know that there. its impact on the stock market. On May 5, 2008 I wrote the article "Subprime Lending", explaining the economics of the subprime.Adjustable Arm To Reduce The Risk To The Borrower, Adjustable rate mortgages typically Have “In 2005, 35 percent of mortgages were ARMs. But now, borrowers need to qualify for the loan at its highest possible rate, so they don’t have the advantage of being able to qualify for a lower payment.floating rate mortgages With an adjustable rate mortgage, the interest rate may go up or down. Many ARMs will start at a lower interest rate than fixed rate mortgages. This initial rate may stay the same for months, one year, or a few years. When this introductory period is over, your interest rate will change and the amount of your payment is likely to go up.