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Adjustable Rate Mortgage or ARM is a mortgage
loan with an interest rate that fluctuates in accordance with a
designated market indicator. Adjustable Rate Mortgages have limits
to how much and how often the interest rate can fluctuate.
An
Adjustable Rate Mortgage interest rates is raised or lowered at
periodic intervals according to the prevailing interest rates in the
market. The interest rate for the mortgage is adjusted according to
an index, usually a bundle of government securities, plus a
predetermined margin. |
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