Adjustable-rate mortgage – Wikipedia – 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 on an index which reflects the cost to the lender of borrowing on the credit markets.
Adjustable Rate Mortgage You’ve been dreaming of owning a home for years, and now you’re finally ready to make the leap. You’ve found the perfect place and may have even started deciding where to put the furniture, but you.5 1 Adjustable Rate Mortgage Definition As an example, an ARM with a current rate of 4 percent and a 2 percent margin has a 1 percent rate cap. On the reset date, the index is at 4 percent, putting the mortgage rate at 6 percent; however,
Alternative Mortgage Transactions], adjustable rate mortgage loan’ means any consumer loan secured by a lien on a one- to four-family dwelling unit, including a condominium unit, cooperative housing unit, or mobile home, where the loan is made pursuant to an agreement under which the creditor may, from time to time, adjust the rate of interest.
Using the index determined the future rate changes of an ARM.. Definition: Weighted index of the cost member banks (in Arizona, California.
Definition of adjustable-rate mortgage in the Definitions.net dictionary. Meaning of adjustable-rate mortgage. What does adjustable-rate mortgage mean? Information and translations of adjustable-rate mortgage in the most comprehensive dictionary definitions resource on the web.
A mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent to.
An adjustable rate mortgage is a loan that bases its interest rate on an index. The index is typically the Libor rate, the fed funds rate, or the one-year Treasury bill. An ARM is also known as an adjustable rate loan, variable rate mortgage, or variable rate loan.
Adjustable rate mortgage (ARM). An adjustable rate mortgage is a long-term loan you use to finance a real estate purchase, typically a home. Unlike a fixed-rate mortgage, where the interest rate remains the same for the term of the loan, the interest rate on an ARM is adjusted, or changed, during its term.
So by definition they’re overpaying because you’re taking. It is not the 15-year fixed. But [an adjustable rate] mortgage has a rate that cannot change for five, seven, 10 or 15 years. Most 30-year.
Definition: arm (adjustable rate mortgage) An adjustable-rate mortgage is a mortgage type where the interest rate that is applied on the outstanding balance varies throughout the life of the loan