Значение слова "CONVERTIBLE ARM" найдено в 2 источниках

CONVERTIBLE ARM

Convertible ARM: translation

An Adjustable Rate Mortgage (ARM) that gives the borrower the option to convert to a fixed-rate mortgage. Convertible ARMs are marketed as a way to avoid rising interest rates and usually include specific conditions. The financial institution often charges a fee to switch the ARM to a fixed-rate mortgage.

Convertible ARMS can be used to lock in to an interest rate if the borrower feels the rates will increase. Restrictions include the ability to lock in only within a certain period, such as the first five years. The mortgages can also have beneficial terms; for example, the locked-in interest rate is often the lowest rate offered within the seven days prior to locking in (the interest rate is usually a little higher than the current market rate).

найдено в "Financial and business terms"

convertible ARM: translation

An ARM for which the borrower has the option to convert from a floating-rate loan to a fixed-rate loan. Convertible ARMs can typically be converted in the first through fifth years of the mortgage loan. Because borrowers can exercise their conversion option for a modest fee, conversion is more attractive to borrowers than the alternative of obtaining a nonconvertible ARM and then later refinancing with a fixed-rate loan when prevailing rates have fallen. Consequently, prepayment speeds for convertible ARMs are faster than prepayment speeds for nonconvertible ARMs. American Banker Glossary

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