adjustable rate mortgage

noun

Definition of adjustable rate mortgage

: a mortgage having an interest rate which is usually initially lower than that of a mortgage with a fixed rate but is adjusted periodically according to the cost of funds to the lender

Examples of adjustable rate mortgage in a Sentence

Recent Examples on the Web Just a handful of banks offer loans for TICs and the product offered is an adjustable rate mortgage. Cnn.com Wire Service, The Mercury News, "Want to save on a home? Buy it with some strangers," 18 Sep. 2019 Just a handful of banks offer loans for TICs and the product offered is an adjustable rate mortgage. Anna Bahney, CNN, "Want to save on a home? Buy it with some strangers," 18 Sep. 2019 Other types of short-term borrowing, such as adjustable rate mortgages and home equity lines of credit, are more directly impacted by changes by the Fed. San Diego Union-Tribune, "What the Fed’s rate cut means for you," 18 Sep. 2019 Over the course of the next 12 years the couple refinanced the home twice, taking on subprime adjustable rate mortgages — the loans at the heart of the mortgage crisis. Allie Gross, Detroit Free Press, "Lawsuits take aim at Wayne County's controversial Action Before Auction program," 3 Sep. 2019 Some desire a better product, such as getting out of an adjustable rate mortgage into a fixed loan. Washington Post, "Interest rates are down, so is it time to refinance?," 17 June 2019 Many people who faced foreclosure during the last recession were first-time buyers who used an adjustable rate mortgage (ARM) to finance their purchase. Ellen James Martin, courant.com, "Smart Moves: Tips for young, single homebuyers," 19 June 2019 The market's behavior suggests that investors expect two more rate hikes from the nation’s central bank this year — actions that will affect credit cards, home equity lines of credit and adjustable rate mortgages. Adam Shell, USA TODAY, "Mortgages, other loans get pricier as 10-year Treasury rate tops 3%," 24 Apr. 2018 The rate on five-year adjustable rate mortgages rose to 3.57 percent this week from 3.53 percent last week. Paul Wiseman, USA TODAY, "Long-term U.S. mortgage rates climb for fifth straight week," 8 Feb. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'adjustable rate mortgage.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of adjustable rate mortgage

1979, in the meaning defined above

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The first known use of adjustable rate mortgage was in 1979

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Cite this Entry

“Adjustable rate mortgage.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/adjustable%20rate%20mortgage. Accessed 28 Nov. 2020.

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More Definitions for adjustable rate mortgage

adjustable rate mortgage

Legal Definition of adjustable rate mortgage

see mortgage

Comments on adjustable rate mortgage

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