ARM Note (Adjustable Rate Mortgage)

An ARM note has a rate that adjusts at scheduled intervals (e.g., every 5 years) per a contracted index + margin. Periodic payments recalculate at each adjustment.

Inputs Policy Stack tracks: initial rate, adjustment interval, index + margin formula or scheduled future rates, term length.

Policy Stack models ARM exposure so you can see how your cash flow would shift under projected rate moves.

Related terms: Promissory Note, Accrual Balloon Note