Adjustable Rate Mortgage (ARM)
CFPB
Updated 08-20-2026
Adjustable Rate Mortgage (ARM)
An adjustable rate mortgage (ARM) is a type of loan for which the interest rate can change, usually in relation to an index interest rate. Your monthly payment will go up or down depending on the loan’s introductory period, rate caps, and the index interest rate. With an ARM, the interest rate and monthly payment may start out lower than for a fixed-rate mortgage, but both the interest rate and monthly payment can increase substantially.
CFPB Mortgage Terms
CFPB · p. 1
FHA Single Family Housing Policy Handbook Glossary November 26 2025
Updated 08-20-2026
Adjustable Rate Mortgage (ARM)
An Adjustable Rate Mortgage (ARM) refers to a Mortgage in which the interest rate can change periodically based on an index plus a margin.
FHA Single Family Housing Policy Handbook Glossary November 26 2025
p. 2
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