Start of Main Content
A magnifying glass is held over a printed newspaper or book, focusing on several small, paper cutouts shaped like different types of houses and buildings.

What is an Adjustable Rate Mortgage (ARM)?

Real Estate Dictionary

< Return to Dictionary Search

A loan with an interest rate that changes periodically in keeping with a current index, like one-year treasury bills. Typically, however, ARMs can't jump more than two percentage points per year or six points above the starting rate.