Adjustable-Rate Mortgage

A mortgage whose interest rate can change over time, which usually lowers the early payment and shifts later rate risk onto the borrower.

Often confused with

Fixed-Rate Mortgage: A fixed rate never changes; an adjustable rate can move with market rates after an initial period.

Taught in

5.3 Saving and Investing for Education, Housing, and Retirement Goals

See also

5.3.A.3