Adjustable Rate Mortgage

Pronunciation: /əˈdʒʌstəbəl reɪt ˈmɔrɡɪdʒ/

Definitions of adjustable rate mortgage

noun a type of mortgage loan where the interest rate can change periodically based on changes in a specified financial index

Example Sentences

A1 An adjustable rate mortgage is a type of home loan.

A2 I am considering getting an adjustable rate mortgage for my new house.

B1 Before choosing an adjustable rate mortgage, it is important to understand how interest rates can fluctuate.

B2 Some people prefer adjustable rate mortgages because they offer lower initial interest rates.

C1 Financial advisors recommend considering the risks and benefits of an adjustable rate mortgage before making a decision.

C2 Investors often use adjustable rate mortgages as part of their real estate investment strategy.

Examples of adjustable rate mortgage in a Sentence

formal Many homeowners choose an adjustable rate mortgage because it offers a lower initial interest rate compared to a fixed-rate mortgage.

informal I heard that an adjustable rate mortgage might be a good option for people looking to save money on their monthly payments.

slang Yo, my cousin just got an ARM and now his mortgage payments are way lower.

figurative An adjustable rate mortgage is like a rollercoaster for your finances, with unpredictable twists and turns in interest rates.

Grammatical Forms of adjustable rate mortgage

• plural: adjustable rate mortgages
• comparative: more adjustable rate mortgage
• superlative: most adjustable rate mortgage
• present tense: adjustable rate mortgages
• future tense: will have adjustable rate mortgages
• perfect tense: have had adjustable rate mortgages
• continuous tense: are having adjustable rate mortgages
• singular: adjustable rate mortgage
• positive degree: adjustable rate mortgage
• infinitive: to have adjustable rate mortgages
• gerund: having adjustable rate mortgages
• participle: adjusted rate mortgage

Origin and Evolution of adjustable rate mortgage

First Known Use: 1975 year

Language of Origin: English

Story behind the word: The term 'adjustable rate mortgage' originated in the United States.

Evolution of the word: Initially, adjustable rate mortgages were introduced as a way for lenders to offer lower initial interest rates to borrowers, with the interest rate adjusting periodically based on market conditions. Over time, the popularity of adjustable rate mortgages fluctuated depending on economic factors and consumer preferences.