adjustable rate mortgage

noun

: a mortgage having an interest rate which is usually initially lower than that of a mortgage with a fixed rate but is adjusted periodically according to the cost of funds to the lender

Examples of adjustable rate mortgage in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
The financial crisis of 2008, when home values imploded, and earlier changes to the mortgage industry in the 1970s and 1980s, including the creation of Freddie Mac and the introduction of the adjustable rate mortgage, also set off permanent transformations. — Debra Kamin, New York Times, 15 Mar. 2024 In the housing market, for example, lending standards have improved, and the number of adjustable rate mortgages has plummeted since the Global Financial Crisis (GFC) of 2008. — Will Daniel, Fortune, 18 Dec. 2023 Meanwhile, the average rate for a kind of adjustable rate mortgage — a 5/1 ARM — dropped to 6.33% from 6.49%. — Anna Bahney, CNN, 16 Oct. 2023 Her advice, however, for people that have adjustable rate mortgages that are about to reset was a bit more blunt. — Byalena Botros, Fortune, 23 Aug. 2023 See All Example Sentences for adjustable rate mortgage

Word History

First Known Use

1979, in the meaning defined above

Time Traveler
The first known use of adjustable rate mortgage was in 1979

Browse Nearby Entries

adjustable rate mortgage
See all Nearby Words

Cite this Entry

“Adjustable rate mortgage.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/adjustable%20rate%20mortgage. Accessed 2 Mar. 2025.

Copy Citation

Share

Legal Definition

adjustable rate mortgage

see mortgage

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

Popular in Grammar & Usage

See More

How to Use Em Dashes (—), En Dashes (–) , and Hyphens (-)

'Canceled' or 'cancelled'?

Why is '-ed' sometimes pronounced at the end of a word?

What's the difference between 'fascism' and 'socialism'?

More Commonly Misspelled Words
See More

Popular in Wordplay

See More

'In Vino Veritas' and Other Latin Phrases to Live By

Even More Words That Sound Like Insults But Aren't

10 Words from Taylor Swift Songs (Merriam's Version)

More Words with Remarkable Origins

Terroir, Oenophile, & Magnum: Ten Words About Wine
See More

Popular Features

See More

How to Use Em Dashes (—), En Dashes (–) , and Hyphens (-)

'In Vino Veritas' and Other Latin Phrases to Live By

Even More Words That Sound Like Insults But Aren't
See More

Games & Quizzes

See All
Play Quordle: Guess all four words in a limited number of tries. Each of your guesses must be a real 5-letter word.
Quordle Can you solve 4 words at once?
Play Blossom: Solve today's spelling word game by finding as many words as you can using just 7 letters. Longer words score more points.
Blossom Word Game Pick the best words!
Play Missing Letter: a crossword with a twist. Each of the 25 puzzle words start with a different letter of the alphabet. Which letter is missing?
Missing Letter A daily crossword with a twist
clapperboard-popcorn
Hollywood Lingo Quiz Are you a showbiz whiz?
See All