Mortgage Dictionary: Definition of Convertible ARM
Here is the definition for 'Convertible ARM'. To show a different definition, select a term from the dropdown text box. The online mortgage glossary will display a definition, plus links to related information.
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Convertible ARM
A convertible ARM is a type of
adjustable-rate mortgage
(ARM) that allows the borrower
to convert the ARM to a
fixed-rate mortgage
within a specified time period.
Lenders often charge a premium for a convertible ARM, so you need to
find out the exact terms and costs in order to evaluate this option.
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