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Mortgage glossary
Adjustable-Rate Mortgage (ARM)
An ARM has an interest rate that may change after an initial period. The loan documents explain when it can change, how the new rate is calculated, and the limits on each change. If the rate rises, the payment may also rise.
In plain language
This term may appear in conversations, forms, or documents during the mortgage process. If something important changes in your situation, ask how it may affect your case before making a decision.
This explanation is general and educational. It is not personalized advice, a loan offer, or a promise of approval.