[uh-juhs-tuh-buh
l-reyt] 
| a mortgage that provides for periodic changes in the interest rate, based on changing market condtions. Abbreviation: ARM |
| ad·just·a·ble-rate mortgage (ə-jŭst'ə-bəl-rāt') n. Abbr. ARM A mortgage whose interest rate is raised or lowered at periodic intervals according to the prevailing interest rates in the market. Also called variable-rate mortgage. |
Adjustable-Rate Mortgage - ARM
A mortgage that allows adjustments of the loan interest rate at pre-specified regular intervals.
Investopedia Commentary
The interest rate for the mortgage is adjusted according to an index (usually a bundle of government securities) plus a predetermined margin.
Related Links
Mortgages: Fixed-Rate Versus Adjustable-Rate
ARMed And Dangerous
Understanding Your Mortgage
Forces Behind Interest Rates
See also: Floater, Interest Rate, Mortgage
Also spelled: ARM