For Adjustable Rate Mortgage (ARM) we have terms and definitions in 9 topics. The topics are Debt Consolidation, Foreclosure, Home Equity, Home Purchasing, Mortgage, Purchasing A Home, Real Estate, Real Estate Appraisal and Refinance.

Adjustable Rate Mortgage (Arm) (Debt Consolidation)

A mortgage in which the interest rate is adjusted periodically based on an index. Also known as the renegotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.

Adjustable Rate Mortgage (Arm) (Foreclosure)

A loan with an interest rate that fluctuates based on a specified financial index, such as Treasury securities, or the 11th District Cost of Funds, etc.

Adjustable Rate Mortgage (Arm) (Home Equity)

A mortgage in which the interest rate is adjusted periodically based on an index. Also known as the renegotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.

Adjustable Rate Mortgage (Arm) (Home Purchasing)

A mortgage with a rate that varies according to an established benchmark, such as the prime lending rate. Many have a cap and may include a one-time option to lock the rate at a set amount.

Adjustable Rate Mortgage (Arm) (Mortgage)

A mortgage on which the interest rate, after an initial period, can be changed by the lender. While ARMs in many countries abroad allow rate changes at the lender's discretion ("discretionary ARMs"), in the US most ARMs base rate changes on a pre-selected interest rate index over which the lender has no control. These are "indexed ARMs". There is no discretion associated with rate changes on indexed ARMs. For articles on ARMs, click on Adjustable Rate Mortgages.
Adjustment interval
On an ARM, the time between changes in the interest rate or monthly payment. The rate adjustment interval and the payment adjustment interval are the same on a fully amortizing ARM, but may not be on a negative amortization ARM. See Should You Fear Negative Amortization?

Adjustable Rate Mortgage (Arm) (Purchasing A Home)

A mortgage in which the interest rate is adjusted periodically based on a preselected index. Also sometimes known as the renegotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.
The Canadian rollover is not to be confused with the flying scissors kick, the body slam, or the half-nelson, which are wrestling terms.

Adjustable Rate Mortgage (Arm) (Real Estate)

A mortgage where the interest rate is not fixed for the life of the loan. These mortgages adjust periodically based on an index that changes with market conditions. The rate of interest is the sum of the index plus a margin ( the margin remains fixed for the life of the loan). Most ARMs have periodic interest rate and payment caps, as well as a life cap. ARM's may also be referred to as AML's or VRM's.

Adjustable Rate Mortgage (Arm) (Real Estate Appraisal)

Mortgage loans under which the interest rate is periodically adjusted, in accordance with some market indictor, to more closely coincide with the current rates. The extent and number of these adjustments are agreed to at the inception of the loan.

Adjustable Rate Mortgage (Arm) (Refinance)

A mortgage in which the interest rate is adjusted periodically based on an index. Also known as the renegotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.

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