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Adjustable rate mortgage |
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Adjustable rate mortgageIn the US, a mortgage in which the interest rate is liable to change over the term of the loan and which is dependent on influences such as interest rates on US Treasury securities.Similar MatchesAdjustable rate mortgage (ARM)Adjustable rate mortgage (ARM)A mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent to the index value plus a predetermined spread, or margin, over the index, usually subject to per-interval and to life-of-loan interest rate and/or payment rate caps. Adjustable rate preferred stockAdjustable rate preferred stockPreferred stock which pays a dividend in line with interest rates generally rather than a fixed dividend. Adjustable pegAdjustable pegAn exchange rate that is pegged, but for which it is understood that the par value will be changed occasionally. This system can be subject to extreme speculative attack and financial crisis, since speculators may easily anticipate these changes. Adjustable rateAdjustable rateApplies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. Typically, such issues have a set floor or ceiling, called caps and collars that limits the adjustment. Adjustable Rate Mortgages (arms)Adjustable Rate Mortgages (arms)Mortgage loans under which the interest rate is periodically adjusted to more closely coincide with current rates. The amounts and times of adjustment are agreed to at the inception of the loan. Also called: Adjustable Rate Loans, Adjustable Mortgage Loans (AML'S), Flexible Rate Loans, Variable Rate Loans. Further SuggestionsLehman Brothers Adjustable Rate Mortgage IndexAdjustable rate preferred stock (ARPS) |
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