Adjustable rate mortgage explained
20 Jul 2018 With an adjustable-rate mortgage, your interest rate can change periodically. Generally, the Here's an explanation for how we make money. An adjustable rate mortgage is a loan that bases its interest rate on an index. The index is typically the Libor rate, the fed funds rate, or the one-year Treasury bill. An adjustable-rate mortgage, or ARM, is a mortgage with an interest rate that can be increased or decreased from time to time, depending on various factors. An