Categories
Investments glossary

3/27 Adjustable-Rate Mortgage (3/27 ARM)

A 3/27 adjustable-rate mortgage, or 3/27 ARM, is a 30-year mortgage frequently offered to subprime borrowers, meaning people with lower credit scores or a history of loan delinquencies. The mortgages are designed as short-term financing vehicles that give borrowers time to repair their credit until they are able to refinance into a mortgage with more favorable terms.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply

Your email address will not be published. Required fields are marked *