log in
« Back to Glossary Index
This is a mortgage with an interest rate that is not fixed. Its rate typically changes when its benchmark (usually prime rate) changes.
A VRM is often referred to as an adjustable rate mortgage (ARM). In reality, there is a slight difference. A VRM has a fixed payment while an ARM has a payment that floats with the interest rate.
See also: Fixed rate mortgage
« Back to Glossary Index