adjustable-rate mortgage

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ad·just·a·ble-rate mortgage

n. Abbr. ARM
A mortgage whose interest rate is raised or lowered at periodic intervals according to the prevailing interest rates in the market. Also called variable-rate mortgage.

adjust′able-rate` mort′gage

a mortgage that provides for a periodic adjustment of the interest rate based on current market conditions. Abbr.: ARM
References in periodicals archive ?
Samuel Williams and wife, Toni, a district manager at Target, chose a two-year adjustable-rate mortgage over a fixed-rate mortgage when they decided to build a five-bedroom, two-story home in San Antonio.
Consumers applying for an adjustable-rate mortgage should receive a copy of the guide from their lenders.
A Combination Mortgage combines the low-rate feature of an adjustable-rate mortgage with the payment stability of a fixed-rate loan in the early years.
All Ginnie Mae, or Government National Mortgage Association, adjustable-rate mortgages - which account for more than one-fifth of the $275 billion adjustable-rate mortgage bond market - are backed by FHA loans.