What is an ARM (Adjustable Rate Mortgage?)

  1. Overview
  2. Types of Loans
  3. What is an ARM (Adjustable Rate Mortgage?)

A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets. The loan may be offered at the lender’s standard variable rate/base rate.


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