price level adjusted mortgage (PLAM) |
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Definition
Loan arrangement where the interest rate remains fixed for the term of the loan, but the amount of monthly installment is changed by adjusting the principal balance according to a price index (such as the consumer price index). Since the installment amount changes over time, it may necessitate additional installments or a balloon payment at the end of the original maturity date.
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price level adjusted mortgage (PLAM) is in the Banking, Commerce & Finance subject.
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