What Is Adjustable-Rate Mortgage?

Also written as: ARM

An ARM is a mortgage with an interest rate that starts fixed for an initial period, then adjusts periodically based on market rates — potentially rising or falling over the life of the loan.

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At a Glance

Adjustable-Rate Mortgage

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Definition

Plain-English meaning

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Related Terms

3 connected concepts

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This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.

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