Mortgage Terminology

1 words in this vocabulary list

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

  • Many homeowners choose an adjustable rate mortgage because it offers a lower initial interest rate compared to a fixed-rate mortgage.
  • I heard that an adjustable rate mortgage might be a good option for people looking to save money on their monthly payments.
  • Yo, my cousin just got an ARM and now his mortgage payments are way lower.
  • An adjustable rate mortgage is like a rollercoaster for your finances, with unpredictable twists and turns in interest rates.