Rollover Mortgage

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Rollover Mortgage

A mortgage that automatically refinances at a new interest rate every few years. The new interest rate causes payments to go either up or down. This entails risk for both the borrower and the lender as neither can predict future directions of interest rates. A rollover mortgages behaves much like an adjustable-rate mortgage (ARM). The primary difference is that a rollover mortgage requires a new loan, while an ARM simply changes the rate.