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 The financial crisis of 2008, when home values imploded, and earlier changes to the mortgage industry in the 1970s and 1980s, including the creation of Freddie Mac and the introduction of the adjustable rate mortgage, also set off permanent transformations. Debra Kamin, New York Times, 15 Mar. 2024 In the housing market, for example, lending standards have improved, and the number of adjustable rate mortgages has plummeted since the Global Financial Crisis (GFC) of 2008. Will Daniel, Fortune, 18 Dec. 2023 Meanwhile, the average rate for a kind of adjustable rate mortgage — a 5/1 ARM — dropped to 6.33% from 6.49%. Anna Bahney, CNN, 16 Oct. 2023 Her advice, however, for people that have adjustable rate mortgages that are about to reset was a bit more blunt. Byalena Botros, Fortune, 23 Aug. 2023 When is an adjustable rate mortgage right for you? Mia Taylor, Fortune, 4 Jan. 2023 What is an adjustable rate mortgage? Amber Bonefont, Sun Sentinel, 16 Sep. 2022 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

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'adjustable rate mortgage.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1979, in the meaning defined above

Time Traveler
The first known use of adjustable rate mortgage was in 1979

Dictionary Entries Near adjustable rate mortgage

Cite this Entry

“Adjustable rate mortgage.” Dictionary, Merriam-Webster, Accessed 18 Jun. 2024.

Legal Definition

adjustable rate mortgage

see mortgage

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