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ARM
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   Also found in: Dictionary/thesaurus, Medical, Legal, Idioms, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.
ARM

Adjustable rate mortgage (ARM). An adjustable rate mortgage is a long-term loan you use to finance a real estate purchase, typically a home.

Unlike a fixed-rate mortgage, where the interest rate remains the same for the term of the loan, the interest rate on an ARM is adjusted, or changed, during its term.

The initial rate on an ARM is usually lower than the rate on a fixed-rate mortgage for the same term, which means it may be easier to qualify for an ARM. You take the risk, however, that interest rates may rise, increasing the cost of your mortgage. Of course, it's also possible that the rates may drop, decreasing your payments.

The rate adjustments, which are based on changes in one of the publicly reported indexes that reflect market rates, occur at preset times, usually once a year but sometimes less often. Typically, rate changes on ARMs are capped both annually and over the term of the loan, which helps protect you in the case of a rapid or sustained increase in market rates.

However, certain ARMs allow negative amortization, which means additional interest could accumulate on the outstanding balance if market rates rise higher than the cap. That interest would be due when the loan matured or if you want to prepay.


ARM
See adjustable-rate mortgage.
ARM

See Adjustable Rate Mortgage.



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He carried away armloads of magazines, books, films and white papers.
That sounds like overdramatizing from someone whose group has sold some 40 million recordings, already owns eight Grammys and armloads of other music awards, and is the first African-American woman to be named pop songwriter of the year by ASCAP - the American Society of Composers, Authors and Publishers.
With clockwork precision, they paralleled or echoed each other--scooping armloads of air, one foot chasing another, or notching tight chains of quick pivots.
 
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