Definition: A financing instrument secured by real property that allows for periodic changes in the interest rate charged. The interest rate can increase or decrease depending on the index and margin agreed upon.
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Examples:
An adjustable-rate mortgage's interest rate will fluctuate at some point in the term of the loan.
