June 1, 2015 | 0 Comments. The G4 Experience: A Special Q & A with George C. Fraser and Veronica Conway Join us today Monday 11/3 for a special conference call.
Adjustable-rate mortgage. A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets. The loan may be offered at the lender's standard variable rate/base rate.
An independent, third party index is used in every adjustable rate mortgage. All adjustable rate mortgages (ARMs) have indexes used in calculating future interest rate changes. An index is the base rate from which your new interest rate is built at each adjustment period. Ideally, you want an index that is stable, widely available for verifying, and simple to understand.