A mortgage where the interest owed changes in response to movements in a specific market-determined interest rate is called a(n)

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An adjustable-rate mortgage (ARM) is a type of mortgage where the interest rate applied on the outstanding balance varies throughout the life of the loan. Normally, the initial interest rate is fixed for a period of time, after which it resets periodically, often every year or even monthly. The interest rate adjustments are based on a benchmark or index, plus an additional spread called an ARM margin.

A Mortgage Where the Interest Owed Changes in Response to Movements