Mortgage Dictionary
Select a term from the dropdown text box. The online mortgage
dictionary will display a definition, plus links to other
related web pages.
Select term:
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.