Adjustable Rate Mortgage
/ˈædʒəstəbəl reɪt ˈmɔːrɡɪdʒ/
Definitions
- (n.) A mortgage loan with an interest rate that periodically adjusts based on a benchmark index.
The borrower preferred an adjustable rate mortgage to benefit from initially lower payments.
Forms
- adjustable rate mortgage
- adjustable rate mortgages
Related terms
See also
Commentary
Adjustable rate mortgages shift interest-cost risk between borrower and lender depending on market index fluctuations; ensure clarity about adjustment periods and caps in drafting.
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