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

Examples of adjustable rate mortgage in a Sentence

Recent Examples on the Web

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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 See all Example Sentences for adjustable rate mortgage

Word History

First Known Use

1979, in the meaning defined above

Time Traveler

The first known use of adjustable rate mortgage was in 1979

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Style

“Adjustable rate mortgage.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/adjustable%20rate%20mortgage. Accessed 21 Nov. 2024.

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