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The interest rate that you secure when you first get an adjustable rate mortgage is called the initial rate. In many cases, the lender may offer a fixed rate for a period before the adjustment period begins. PennyMac, for example, offers adjustable rate loans with 3, 5, 7, and 10 years of an initial fixed rate.

An adjustable-rate mortgage (ARM) is a loan in which the interest rate may change periodically, usually based upon a pre-determined index. The ARM loan may include an initial fixed-rate period that is typically 3 to 10 years.

One of the most common types of adjustable rate mortgages, the 5/1 ARM, features a fixed rate for 5 years, after which the rate resets once per year up or down based on the level of interest rates.

Adjustable Rate Mortgages Defined An ARM, short for "adjustable rate mortgage", is a mortgage on which the interest rate is not fixed for the entire life of the loan. The rate is fixed for a period at the beginning, called the "initial rate period", but after that it may change based on movements in an interest rate index.

A 5/1 adjustable rate mortgage (5/1 ARM) is an adjustable-rate mortgage (ARM) with an interest rate that is initially fixed for five years then adjusts each year. The "5" refers to the number.

An adjustable-rate mortgage (ARM) is a short term mortgage option that offers a lower initial interest rate and monthly payment. After your introductory rate term expires, your estimated payment and rate may increase. This fixed-rate mortgage calculator provides customized information based on the information you provide, but it assumes a few.

71 Arm Tempted? Here are some pointers. mortgage brokers babble on about 5/1 or 7/1 ARMs with 2/2/6 or 5/2/5 caps. ING Direct recently offered a 5/1 ARM for loans up to \$750,000, at 2.75%, with a 2/2/6 cap..

Also known as an ARM loan, an adjustable-rate mortgage loan is a loan that allows borrowers to take advantage of compressed rates.

Definition of Adjustable Rate Mortgage: ARM. A mortgage with an interest rate that may change, usually in response to changes in the Treasury Bill rate.

On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages also inched up. The average rate on a 5/1.

Adjustable-Rate Mortgage – ARM: An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan.