What is PRICE LEVEL ADJUSTED MORTGAGE (PLAM)?

The fixation of the interest rates of a loan agreement. However, the monthly payments are variable and are determined by adjusting the balance payment according to the consumer price index. Due to the variable nature of the payments, the period of the loan agreement may be extended to allow for complete payment of the balance or may require a baloon payment as the final payment.

More On This Topic



Link to This Definition
Did you find this definition of PRICE LEVEL ADJUSTED MORTGAGE (PLAM) 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