Adjustable rate mortgages have interest rates that adjust periodically according to the movement in some index.

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Adjustable rate mortgages (ARMs) have interest rates that are tied to an index, such as the LIBOR or Treasury rate, and the interest rate adjusts periodically (usually annually) based on the movement of that index. This is different from a fixed rate mortgage, where the interest rate remains the same throughout the life of the loan.

Adjustable Rate Mortgages Have Interest Rates That Adjust Periodically According