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#162263 - 02/20/04 06:53 PM ARMS vs variable rate loans
Anonymous
Unregistered

We are confusing ourselves here at out bank in our discussions to the point of, what is the difference between the two terms?

Sorry this is a simple question, no one is sure anymore......

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Lending Compliance
#162264 - 02/20/04 07:46 PM Re: ARMS vs variable rate loans
redsfan Offline
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redsfan
Joined: Dec 2000
Posts: 3,455
The Pennant Race
A variable-rate loan is one where the APR can increase after consummation. See 226.18(f)(1).

An adjustable rate mortgage is a variable-rate loan secured by real estate.

All adjustable rate loans are variable-rate loans. But not all variable-rate loans are adjustable-rate mortgages.
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