10 1 arm rates Meaning and Definition
10 1 arm rates
Pronunciation
(n/a)
Part of Speech
Noun
Definition
A type of adjustable interest rate loan, where the interest rate is fixed for a specific period, typically 10-20 years, and then adjusts annually, often based on the one-year London Interbank Offered Rate (LIBOR).
Examples
- Borrowers often choose 10-year 1-arm rates for their mortgages due to the initial lower interest rate.
- The 1-arm rate adjustment can be unpredictable, making it difficult for homeowners to budget.
Synonyms
- ARM
- Adjustable-rate mortgage
Antonyms
- Fixed-rate mortgage
- Traditional mortgage
Etymology
The term “1-arm rate” originates from the fact that it is based on a single underlying interest rate index, LIBOR.
Usage Notes
When discussing 10 1-arm rates, it’s essential to clarify the period and frequency of adjustment to avoid confusion.
Cultural References
10 1-arm rates have been referenced in various financial publications and online resources.
Idiomatic Expressions or Phrases
“Rate adjustment” is a common phrase related to 10 1-arm rates.
Related Words or Phrases
- Variable rate
- Fixed rate
- Floating rate
Collocations
- Mortgage 10 1-arm rates
- Home loan 10 1-arm rates
- Financial 10 1-arm rates
Frequency of Use
10 1-arm rates are commonly used in the financial industry and among borrowers seeking adjustable-rate mortgages.
Common Misspellings
- Gerbera
- 10 arm
- 1 arm loan