Skip to main content

">Variable Rate Mortgage (VRM)

« 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

compare button