What is ARM?
Adjustable-rate mortgage: resets from index + margin on a set interval, with caps and floors limiting movement. The index is an interest-rate benchmark, not an inflation index.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.