A real estate loan whose interest rate is adjusted periodically to accomodate market rates. A limit is set as to how high or low it can be changed and how frequently. It starts with low interest and can change to attract buyers. AKA variable rate mortgage

More On This Topic

Link to This Definition
Did you find this definition of ADJUSTABLE RATE MORTGAGE (ARM) helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary