An Escalator Mortgage, commonly referred to as an Adjustable-Rate Mortgage (ARM), is a type of home loan where the interest rate fluctuates based on a specific financial index, causing periodic payment adjustments over the life of the loan.
A Flexible Payment Mortgage (FPM) allows borrowers to choose among several monthly payment options including lower interest-only and minimum payments, providing greater flexibility and control over mortgage expenses.
An Interval Adjustment Cap refers to a limit on the amount a loan's interest rate can increase or decrease during each adjustment interval on an adjustable-rate mortgage (ARM). This cap helps borrowers predict and manage their mortgage payments by restricting rate fluctuation within set periods.
The payment adjustment date is the specific date on which the interest rate of an adjustable-rate mortgage (ARM) can be adjusted to reflect changes in market interest rates.
A rate cap refers to predetermined limits placed on adjustments to the interest rate on an adjustable-rate mortgage (ARM), safeguarding borrowers from excessive rate fluctuations over the life of the loan.
A step loan is a type of adjustable-rate mortgage where the interest rate is adjusted only once during the life of the loan, blending characteristics of both fixed-rate and adjustable-rate loans.
