Business Dictionary

The Small Business Dictionary defines, explains, and cross-references more than 1,800 key small business words, phrases, acronyms, and concepts, covering topics including small business finance, management, sales, startup, exit strategy, and growth. To use the dictionary, type a word in the search box or click a letter to browse the listings alphabetically.

Adjustable-rate mortgage (ARM)

A mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent to the index value plus a predetermined spread, or margin, over the index, usually subject to per-interval and to life-of-loan interest rate and/or payment rate caps.

Glossary provided by Campbell R. Harvey, Professor of Finance at Duke University.
Copyright © 2006, Campbell R. Harvey. All worldwide rights reserved. Do not reproduce without explicit permission.
 
 
 
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