Adjustable rate mortgage (ARM)
Adjustable rate mortgage (ARM)
The ARM is a loan secured on property whose interest rate and monthly repayments vary over time. The variations in ARM usually correspond and depend on the flucatuations of a pre-determined index. Due to its nature, it is also known as the Variable Rate Mortgage or the Negotiable Rate Mortgage.
See further Adjustment date, Convertible ARM, Fixed rate mortgage
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