adjustable-rate mortgage
Fluctuating home loan
An adjustable-rate mortgage is a home loan whose interest rate changes periodically based on market conditions, as opposed to a fixed-rate mortgage where payments stay constant.
The rate typically starts lower than fixed alternatives, then adjusts at set intervals: Their adjustable-rate mortgage reset after five years, and their payments jumped.
- ARMReduced instruction processor standard
- amortizationGradual debt reduction schedule
- monthly paymentRecurring scheduled remittance
- borrowerOne who takes temporarily
- loanBorrowed money repaid later
refinancing · interest · lender · subprime lending · interest rate risk · LIBOR · margin · rate · securitization · payment schedule · index · principal · housing market · housing bubble · foreclosure · deed of trust · closing costs · property appraisal
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