adjustable rate mortgage

noun

: 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

Example Sentences

Recent Examples on the Web So an olderloan known as an adjustable rate mortgage, or ARM, is making a comeback. —

Trevor Fraser, Orlando Sentinel, 13 Oct. 2022 Another way to stay in the game and evade higher payments is to use an adjustable rate mortgage or ARM, said Bill Adams, president of Adams Realtors which specializes in properties in and close to the city of Atlanta. —

Michael E. Kanell, ajc, 6 May 2022 Many times first-time homebuyers opt for an adjustable rate mortgage to obtain the lowest monthly payment possible. —

Tribune News Service, oregonlive, 21 Jan. 2022 Many times first-time homebuyers opt for an adjustable rate mortgage to obtain the lowest monthly payment possible. —

Tribune News Service, oregonlive, 21 Jan. 2022 See More

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.

Word History

First Known Use

1979, in the meaning defined above

Time Traveler

The first known use of adjustable rate mortgage was in 1979

See more words from the same year

Dictionary Entries Near adjustable rate mortgage

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Cite this Entry

Style

“Adjustable rate mortgage.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/adjustable%20rate%20mortgage. Accessed 29 Mar. 2023.

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