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ARM

(Adjustable Rate Mortgage) A mortgage whose interest rate over the life of the loan is not necessarily the same as the original interest rate at the loan inception. Rate changes may go up or down and are usually tied to an economic indicator and a time period. The person getting the mortgage should check to see if these fluctuations have a cap, and make sure they are comfortable with whatever that cap is. Some ARMS are convertible to a fixed interest rate after a period of time.

See also:
  • Acceptance
  • Ad Valorem Tax
  • Adjustable Rate Mortgage
  • Agent
  • Amortization
  • Amortization Schedule
  • Annual Percentage Rate
  • Appraisal
  • Appraised Value
  • Appreciation
  • APR
  • ARM
  • As Is Condition
  • Asking/Listing Price
  • Assessed Value
  • Assignee
  • Assumable Mortgage
  • Assumption of mortgage

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