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|TRUSTDale Tip of the Day: *Mortgage Terminology|
Adjustable Rate Mortgage (ARM) : A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Also sometimes known as a renegotiable rate mortgage variable rate mortgage or Canadian rollover mortgage.
Adjusted Basis: The cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken.
Adjustment Date: The date that the interest rate changes on an adjustable rate mortgage (ARM).