One-year Adjustable

Definition

• A mortgage where the annual rate changes from year to year. The rate is based on movements of a published index plus a specified margin, selected by the lender.

Synonyms
adjusted annually

Related Terms and Acronyms

• Adjustable-Rate Mortgage (ARM) — Acronym,
  • A type of mortgage loan program in which the interest rate and payments may be adjusted as frequently as every month. The principal loan balance or term of the loan may also be adjusted to reflect the rate change. The purpose of the program is to allow mortgage interest rates to fluctuate with market conditions.
  ➥ A type of variable rate mortgage product.
• Fixed Rate Mortgage (FRM) — Acronym, Very Important,
  • A loan in which the interest rate and payments remain the same for the entire life of the loan. The interest rate and payment amounts are set at the time of loan origination.
• Interest Adjustment Date — Definition,
  • The date one month prior to the beginning of amortization when accrued interest computed on the monies advanced becomes due.
• Interest Rate (IR) — Acronym, Very Important,
  • The rate a lender charges an individual to borrow money.
• Loan — Definition,
  • Letting another party use something of value temporarily.
• Mortgage (mtg) — Abbreviation, Important,
  • A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
• Mortgage Rate — Definition, Very Important,
  • The interest rate on a mortgage loan.
  ➥ You can compare mortgage rates using this website by clicking 'Rates' above.
• Rate Lock-in — Definition,
  • A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.
• Variable Rate Mortgage (VRM) — Acronym, Very Important,
  • Home loan in which the interest rate is changed periodically based on a standard financial index. Also called an "Adjustable-rate Mortgage."
  ➥ A type of mortgage loan offered by brokers and lenders.