The definition of a loan modification is as follows;
A loan modification is defined as “the modification of an existing loan agreement between a borrower and a lender, whereby the lender agrees to either; lower the payment amounts by spreading the loan over a longer term, lowering the APR (annual percentage rate – interest), combining the [...]

In brief, ARM is an acronym for Adjustable Rate Mortgage. An ARM is the most common mortgage used in Western culture in countries like the United States, Canada, and the U.K.
With an ARM the borrower’s (homeowner’s) interest rate on their mortgage fluctuates based on the current interest rate index used by the lending institution (subjectively). [...]