alternative mortgage instrument
Also found in: Acronyms.
Alternative Mortgage Instrument
Any mortgage loan other than a fixed rate, amortized, conventional mortgage. Examples include adjustable-rate mortgages and hybrid mortgages. They are most popular when interest rates are high and more people cannot afford a regular mortgage, or when a larger number of people are buying investment property. The proliferation of alternative mortgage instruments has been cited as a contributing factor in causing the 2008 economic crisis.