Indexed Rate — An interest rate charged on loans to borrowers that is calculated by taking the sum of a benchmark index interest rate and a specified margin. The indexed rate is used to calculate the interest rate on an adjustable rate mortgage (ARM). The… … Investment dictionary
ARM Margin — A fixed percentage rate that is added to an index value to determine the fully indexed interest rate of an adjustable rate mortgage (ARM). The margin is constant throughout the life of the mortgage, while the index value is variable. For example … Investment dictionary
ARM architecture — This article is about a computer processor architecture. For other uses, see ARM (disambiguation). Logo ARM Designer ARM Holdings Bits … Wikipedia
ARM Index — The benchmark interest rate to which an adjustable rate mortgage is tied. An adjustable rate mortgage s interest rate consists of an index value plus a margin. The index underlying the adjustable rate mortgage is variable, while… … Investment dictionary
5-1 Hybrid Adjustable-Rate Mortgage - 5-1 Hybrid ARM — An adjustable rate mortgage (ARM) with an initial five year fixed interest rate. After this initial five year period, the interest rate begins to adjust on an annual basis according to an index plus a margin (or, the fully indexed interest rate) … Investment dictionary
Payment Option ARM — A monthly adjusting adjustable rate mortgage (ARM) which allows the borrower to choose between several monthly payment options: a 30 or 40 year fully amortizing payment, a 15 year fully amortizing payment, an interest only payment, a minimum… … Investment dictionary
2/28 Adjustable-Rate Mortgage - 2/28 ARM — A type of adjustable rate mortgage that has a two year fixed interest rate period after which the interest rate on the mortgage begins to float based on an index plus a margin. The index plus the margin in known as the fully indexed interest rate … Investment dictionary
3/27 Adjustable-Rate Mortgage - 3/27 ARM — A type of adjustable rate mortgage (ARM) frequently offered to subprime borrowers. These mortgages are designed as short term financing vehicles that give borrowers time to repair their credit until they are able to refinance into a mortgage with … Investment dictionary
5-6 Hybrid Adjustable-Rate Mortgage - 5-6 Hybrid ARM — An adjustable rate mortgage with an initial five year fixed interest rate after which the interest rate begins to adjust every six months according to an index plus a margin (or, the fully indexed interest rate). The index is variable while the… … Investment dictionary
Interest-Only ARM — An adjustable rate mortgage (ARM) with an initial interest only payment period. During the interest only period, only the calculated interest must be paid; no principal must be repaid. The length of the interest only period varies with each… … Investment dictionary
