ARM. A mortgage with an interest rate that may change, usually in response to changes in the Treasury Bill rate or the prime rate. The purpose of the interest rate adjustment is primarily to bring the interest rate on the mortgage in line with market rates. The mortgage holder is protected by a maximum interest rate (called a ceiling), which might be reset annually. ARMs usually start with better rates than fixed rate mortgages, in order to compensate the borrower for the additional risk that future interest rate fluctuations will create.
Related information about Adjustable Rate Mortgage:
- Adjustable-rate mortgage - Wikipedia, the free encyclopedia
A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based ...
- Adjustable-Rate Mortgages - Consumer Financial Protection Bureau
An adjustable-rate mortgage (ARM) is a loan with an interest rate that changes. ... If you want to pay off your ARM early to avoid higher pay- ments, you might pay ...
- Adjustable-Rate Mortgage (ARM) Definition | Investopedia
A type of mortgage in which the interest rate paid on the outstanding balance varies according to a specific benchmark. The initial interest rate is normally fixed ...
- FHA Adjustable Rate Mortgage - HUD
What is an ARM? An ARM is an Adjustable Rate Mortgage. Unlike fixed rate mortgages that have an interest rate that remains the same for the life of the loan, ...
- Adjustable-rate mortgage calculator - ARM loan calculators
Bankrate.com provides FREE adjustable rate mortgage calculators and other ARM loan calculator tools to help consumers learn more about their mortgages.
- Adjustable Rate Mortgages - How to Decide if an ARM Is Right for You
An adjustable rate mortgage, called an ARM for short, offers home buyers lower initial interest rates, but the lower rates are not guaranteed for the length of the ...
- Adjustable Rate Mortgage (ARM) | Quicken Loans
Need a home loan that saves you money? The SMARTARM® gives you the lowest rates we offer for a fixed period – saving you cash upfront! Call (888) ...
- Should You Consider an Adjustable-Rate Mortgage? - The Home ...
Jun 19, 2012 ... Fixed-rate mortgages offer stability, but with the right timeline, ARMs could save homeowners money.