An adjustable-rate mortgage (ARM) is a type of mortgage loan that allows the interest rate to be changed at specific intervals over the maturity of the loan, enabling borrowers to benefit from potentially lower interest rates initially compared to fixed-rate mortgages.
An Alternative Mortgage Instrument (AMI) is any mortgage other than a fixed-interest-rate, level-payment amortizing loan. These instruments are often used to accommodate varying financial circumstances and offer different terms compared to traditional loans.
A Guide to Understanding Hybrid ARMs: A mortgage offering both fixed and adjustable interest rate periods.
An Option ARM is a type of adjustable-rate mortgage that allows the borrower to select from different payment options each month, including fully amortizing payments, interest-only payments, and minimum payments resulting in negative amortization.
The specific date on which the interest rate of an Adjustable-Rate Mortgage (ARM) can be recalibrated as per predetermined terms.
A variable interest rate is the amount of compensation to a lender that is allowed to vary over the maturity of a loan. It is generally governed by an appropriate index.
