Adjustable Rate Mortgages (arms)

 

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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.



Adjustable Rate Mortgages (arms)

Similar Matches

Adjustable rate

Adjustable rate

Applies 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 preferred stock

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Preferred stock which pays a dividend in line with interest rates generally rather than a fixed dividend.


Adjustable rate preferred stock (ARPS)

Adjustable rate preferred stock (ARPS)

Publicly traded issues that may be collateralized by mortgages and MBS


Adjustable peg

Adjustable peg

An 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 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.


Further Suggestions

adjustable rate mortgage
Lehman Brothers Adjustable Rate Mortgage Index


 
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