A mortgage loan in which the interest rate changes periodically, usually in relation to a predetermined economic index is called an Adjustable Rate Mortgage (ARM)

Question

A mortgage loan in which the interest rate changes periodically, usually in relation to a predetermined economic index is called an Adjustable Rate Mortgage (ARM)​

Quizplus · Accepted Answer

An Adjustable Rate Mortgage (ARM) has an interest rate that can change over time, typically in relation to an index such as the prime rate, making monthly payments variable.

A Mortgage Loan in Which the Interest Rate Changes Periodically