Adjustable Rate Mortgage Loan

Adjustable Rate Mortgage Loan Information

ARM Loan - Adjustable Rate Mortgage. A real estate mortgage agreement between a lending institution and a borrower in which the interest rate is not fixed but changes over the life of the loan at predetermined intervals. The variable interest rate on the loan is adjusted up or down according to the movement of a specified index, such as the prime rate plus 5%.

For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

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