3/27 adjustable-rate mortgage - 3/27 arm


Type of short term adjustable rate mortgage offered to subprime borrowers until the borrower attains a better credit rating and can refinance to a mortgage with more attractive terms. These will typically have a fixed interest rate for three years and then a floating interest rate, based on an index plus a margin.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
3-2-1 buydown 3-6-3 rule