License Deck

1 / 36

Unit 16

Adjustable-Rate Mortgage (ARM)

Tap to reveal definition

Adjustable-Rate Mortgage (ARM)

A mortgage with an interest rate that changes periodically based on an index. Usually starts with a lower rate that can increase or decrease.

A 5/1 ARM has a fixed rate for the first five years, then adjusts annually based on market conditions.

Space flips · arrows move · S stars · 1 still learning · 2 known