adjustable rate mortgage

adjustable rate mortgage
adjustable rate mortgage see mortgage

Merriam-Webster’s Dictionary of Law. . 1996.

adjustable rate mortgage
(ARM)
A mortgage loan with an interest rate that fluctuates in accordance with a designated market indicator — such as the weekly average of one-year U.S. Treasury Bills — over the life of the loan. To avoid constant and drastic fluctuations, ARMs typically limit how often and by how much the interest rate can vary.
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Nolo’s Plain-English Law Dictionary. . 2009.

adjustable rate mortgage
Adjustable Rate Mortgage (ARM)
USA
A mortgage loan in which the interest rate on the note periodically fluctuates based on listed indexes. Certain indexes are more commonly used, including the London Interbank Offered Rate (LIBOR) and the Cost of Funds Index (COFI). However, some lenders tie ARMs to their own cost of funds indexes instead. ARMs often contain limitations (caps) on what a borrower can be charged as interest rates rise.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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Look at other dictionaries:

  • adjustable-rate mortgage — ( ARM) A loan for which the interest rate ( coupon rate) is adjusted periodically to reflect changes in a previously selected index rate. ARMs may have caps and floors that limit the annual and/or the lifetime change in the coupon rate. American… …   Financial and business terms

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  • Adjustable-rate mortgage — 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… …   Wikipedia

  • Adjustable-Rate Mortgage - ARM — 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 for a period of time after which it is reset periodically, often every month. The… …   Investment dictionary

  • adjustable rate mortgage — noun : a mortgage having an interest rate which is usually initially lower than that of a fixed rate mortgage but is adjusted periodically according to the cost of funds to the lender abbreviation ARM * * * (abbr.: ARM) n. a mortgage whose rate… …   Useful english dictionary

  • Adjustable-Rate Mortgage — (ARM) (Ипотечный кредит с плавающей ставкой ИКПС) ипотечный кредит, у которого процентная ставка переустанавливается через регулярные периоды времени. Переустановка значения ставки производится в соответствии с заранее определенным критерием. Как …   Ипотека. Словарь терминов

  • adjustable rate mortgage — noun Date: 1981 a mortgage having an interest rate which is usually initially lower than that of a mortgage with a fixed rate but is adjusted periodically according to the cost of funds to the lender …   New Collegiate Dictionary

  • adjustable-rate mortgage — ARM A mortgage in which the interest rate is adjusted at periodic intervals, usually to reflect the prevailing rate of interest in the money markets Borrowers are sometimes protected by a cap, or ceiling, above which the interest rate is not… …   Big dictionary of business and management

  • adjustable-rate mortgage — adjust′able rate mort′gage n. bus a mortgage that provides for a periodic adjustment of the interest rate based on current market conditions Abbr.: ARM …   From formal English to slang

  • adjustable-rate mortgage — /euh jus teuh beuhl rayt / a mortgage that provides for periodic changes in the interest rate, based on changing market conditions. Abbr.: ARM * * * …   Universalium

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