Adjustable Rate Mortgage (ARM) - A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Subject to certain limitations, the rate and payments on an ARM loan rise and fall with the market.

adjustable rate mortgage.

Adjustable Rate Mortgage Cash Out. - A refinance for more than the balance of the current mortgage. The excess money taken out reduces the borrower’s equity.

Adjustable Rate Mortgage Refinancing. - The process of paying off one loan with the proceeds from a new loan secured by the same property.

Adjustable Rate Mortgage Loan. - A loan for which real estate serves as collateral to provide for repayment in case of default.

Adjustable Rate Home Equity Loan. - An additional mortgage secured by the equity in the home. All funds for this loan are disbursed at closing. (In contrast, see Home Equity Line Of Credit).

Adjustable Rate Equity Line Of Credit. - A revolving line of credit secured by the equity in the home. Unlike a Home Equity Loan, these funds may be drawn and repaid like a credit card.

Adjustable Mortgage Rate Refinance.