ARM

(redirected from armer)
Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia.

ARM

ARM

GOST 7.67 Latin three-letter geocode for Armenia. The code is used for transactions to and from Armenian bank accounts and for international shipping to Armenia. As with all GOST 7.67 codes, it is used primarily in Cyrillic alphabets.

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.

References in periodicals archive ?
Ms Armer added: "They are now talking about getting traffic access by the pumping station but they will still come down the side of the cafe.
JAILED: Kellie Armer was found guilty of neglect and right, Carol O'Keefe
Her barrister, Amiot Vollenweider, yesterday said that when Armer realised she had forgotten to attend she telephoned her solicitors who advised her to surrender to police which she did on Friday.
And, further, Bill Armer believes we should have 'due regard' for the result.
The tot died when Armer lay on him while she slept.
Armer was to go on trial yesterday for the manslaughter of the baby boy by gross negligence,but pleaded guilty to the lesser charge.
Bill Armer proclaims: "If we respect democracy, we must respect their decision.
MBSR is another tool to enhance the lives of breast cancer survivors," Armer said.
Kellie Armer, 22,appeared at Liverpool crown court yesterday after the death of Joel Prescott in 2002.
Kellie Armer , 21, is charged with the manslaughter by gross negligence of two-month old Joel Prescott.
And the Serious Fraud Office has been called in as the firm yesterday suspended a second boss, Stuart Armer.
Quist has been appointed president and chief executive officer of Managed Care Information Systems, Chairman Lee Armer announced.