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Adjustable Rate Mortgage (ARM)
Also known as a variable rate mortgage. The interest rate on these mortgages changes periodically.
Variable or adjustable loans are loans whose interest rate fluctuates over the period of the loan.
the mortgage rate:
new rate = index + margin
The new rate is also influenced by the adjustment caps and the lifetime caps.
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Related Mortgage Definitions:
Adjustable Rate Mortgage, ARM
Adjustable Rate Mortgage (ARM) Also known as a variable rate mortgage. The interest rate on these mortgages changes periodically. Variable or adjustable loans are loans whose interest rate fluctuates over the period of the ... more...
Variable Rate Mortgage
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