While working with your mortgage company, it’s important to understand the mortgage terms that may be used so you can have a better (and easier) discussion with your mortgage company.
Adjustable-Rate Mortgage (ARM)
A mortgage loan with an interest rate that can change at any time, usually in response to the market or Treasury Bill rates. These types of loans usually start off with a lower interest rate comparable to a fixed-rate mortgage.
Paying off a debt by making regular installment payments over a set period of time, at the end of which the loan balance is zero.