ARM

ARM stands for ‘ adjustable-rate mortgage ,' which is a type of home loan that has a fixed interest rate for an initial period of time then after a certain point, the rate changes, which means it is no longer a fixed interest rate but rather the interest fluctuates during the life of the loan , based on the change or movement in the index rate or specific benchmark.

[Last reviewed in February of 2022 by the Wex Definitions Team ]

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