convertible ARM
convertible ARM
An adjustable-rate mortgage loan that the borrower may convert to a fixed-interest rate during a predetermined time period, at an interest rate calculated according to a formula set out in the note.
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The Convertible Arm can be attached securely to a desk or wall, without tools, using the hardware supplied with the unit.
The loans for the Graduate's Pointe Apartments and the University Park Apartments were originated by ARCS' Princeton office through Fannie Mae's Convertible ARM loan product which provides the low rates that make adjustables so attractive, with an option to convert to fixed.
When a convertible ARM is written, this could result in the lender having two contact points with the borrower (when the loan is made and when the CARM is converted to a FRM).
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