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Adjustable Rate Mortgage (ARM)
Also known as a 'variable' or 'floating rate' mortgage. An adjustable rate mortgage (ARM) is a type of mortgage loan where a borrower is offered a fixed introductory interest rate in the early stages of the loan. After this introductory period, interest rates are reset to levels that spread to a level higher than a specified benchmark, which is called an ARM margin. An ARM's rate may rise or fall when reset depending on the movement of the benchmark rate. For this reason, fixed rate mortgages (FRM's) are preferred over ARM's at times when mortgage interest rates are at historically low levels.

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November 20, 2009 on The End of Credit Card Rip-offs?