What is a Convertible ARM?

The Convertible ARM has traits similar to the ARM loan, but offers an option for the borrower to change the mortgage to a fixed-rate loan during an early interest rate adjustment period.  more

The convertible ARM is a type of adjustable rate mortgage that allows for the conversion to a fixed rate of interest at specific points during the life of the mortgage. In general, the conversion of an ARM cannot take place until the mortgage has been in place and has been kept current for at least thirteen months from the date of issue. Often, the terms and conditions defined in a convertible ARM will not allow the conversion to take place until at least three calendar years have passed since the mortgage went into effect. One of the main benefits to going with a convertible ARM is that the borrower may be able to take advantage of a better interest rate at some future point. Since interest rates can and do fluctuate over time, it is possible that the borrower may be able to enjoy a period of several years where the applied interest rate is very favorable in comparison to the fixed rate that was available at the time the mortgage agreement was drafted. When this type of situation ...  more

A Convertible ARM has traits similar to a traditional ARM loan, with an added option for the borrower to convert the mortgage to a fixed-rate loan during an early interest rate adjustment period.  more

An adjustable-rate mortgage that can be converted to a fixed-rate mortgage under specified conditions.  more

Convertible ARM is the Adjustable-Rate Mortgage that has a provision allowing the borrower to convert the mortgage to a fixed rate term. The conversion feature is outlined in the mortgage note and has certain restrictions.  more

A. This is an ARM that will allow you to convert to a fixed rate at a certain specified time for a predetermined fee.  more

A type of ARM that includes an option for the mortgagor to change the mortgage to a fixed-rate mortgage in the early years of the mortgage term. For answers to specific questions or concerns, contact us at 1-800-403-3595.

A type of ARM that includes an option for the mortgagor to change the mortgage to a fixed-rate mortgage in the early years of the mortgage term.  more