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what is an arm

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A 5 year ARM, also known as a 5/1 ARM, is a hybrid mortgage. A hybrid mortgage combines features from an adjustable rate mortgage (ARM) and a fixed mortgage. It begins with a fixed rate for a specified number of years, but then changes to an ARM with the rate changing every year for the rest of the term of the loan.

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An arm’s length transaction is a business deal in which the buyers and sellers act independently and do not have any relationship to each other. The concept of an arm’s length transaction assures.

An adjustable rate mortgage, also known as an ARM, is a type of mortgage loan that starts with a fixed rate and then the rate adjusts.

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Arm – definition of arm by The Free Dictionary – Define arm. arm synonyms, arm pronunciation, arm translation, English dictionary definition of arm. abbr. adjustable-rate mortgage arm1 n. 1. An upper limb of the human body, connecting the hand and wrist to the shoulder. 2. A part similar to a human arm,

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An adjustable rate mortgage, called an ARM for short, is a mortgage with an interest rate that is linked to an economic index. The interest rate and your payments are periodically adjusted up or down as the index changes.