Real Estate Term of the Day: Adjustable Rate Mortgage (ARM)
ADJUSTABLE RATE MORTGAGE (aka: ARM) – a type of mortgage loan that allows the interest rate to be changed at specific intervals over the maturity of the loan (Barron’s Dictionary of Real Estate Terms)
Contrast to: FIXED-RATE MORTGAGE
When financing a new home, it is key that you work with your lender to ensure you pick the correct loan product that works best for you and your financial situation. As with any type of mortgage it is very important that you understand the implications of the loan 100%. Don’t be afraid to ask your lender as many questions about the loan product as possible.