ADJUSTABLE-RATE MORTGAGE (ARM) RETOTD Episode 00313
Podcast: Play in new window | Download | Embed
Subscribe: Android |
ADJUSTABLE-RATE MORTGAGE (ARM)
A mortgage loan with an interest rate that fluctuates in accordance with a designated market indicator — such as the weekly average of one-year U.S. Treasury Bills — over the life of the loan. To avoid constant and drastic fluctuations, ARMs typically limit how often and by how much the interest rate can vary.