# Adjustable-Rate Mortgage

> Adjustable-Rate Mortgage moves future household income into present purchasing power

| Field | Value |
|---|---|
| Stable ID | `node:kiduna:real-estate-mortgage:residential-mortgages:adjustable-rate-mortgage` |
| Family | Residential Mortgage Products |
| Domain | Economics |
| Era | Institutional Age → Agentic Age |
| Kind | financial-instrument |
| Archetype | The Promise |
| Claim layers | empirical, cultural_historical, synthesis, interpretive, symbolic_divinatory |

## What it is

A mortgage whose interest rate can reset according to a specified index, margin, timing, and caps.

## What it actually does

Transfers part of future interest-rate risk from lender or investor to borrower while initially altering payment and qualification.

## Why it exists

It exists because place is unique and immovable while law, capital, information, and human lives must still coordinate around it across time.

## System mechanics

- **Who uses it:** owner, occupant, buyer, seller, lender, investor, steward, regulator
- **Incentives:** access to capital, yield, liquidity, risk allocation
- **Inputs:** capital, terms, collateral or cash flow, counterparties, risk assumptions
- **Outputs:** funding, cash-flow claims, obligations, risk allocation
- **Dependencies:** Title, Appraisal, Ability to Repay, Closing, Servicing

## Archetypal reading

- **Essence:** Adjustable-Rate Mortgage moves future household income into present purchasing power
- **Gift:** Clarity about adjustable-rate mortgage makes a hidden allocation of place, time, authority, value, or risk available for deliberate choice.
- **Wound / Shadow:** When adjustable-rate mortgage is treated as neutral or inevitable, its costs can be shifted to people who hold less information, authority, liquidity, or mobility.
- **Failure mode:** The failure mode appears when adjustable-rate mortgage is stale, opaque, mispriced, misrecorded, overextended, or applied outside the conditions that made it useful.

## Lenses

- **Personal:** Notice where adjustable-rate mortgage appears as a structure in your own commitments: what is held, promised, priced, protected, excluded, or deferred?
- **Business:** Adjustable-Rate Mortgage reveals a handoff among information, authority, incentives, operating work, and capital. Make the owner of each handoff explicit.
- **Financial:** Adjustable-Rate Mortgage changes the timing, priority, comparability, liquidity, or distribution of cash flow and risk.
- **Property:** Adjustable-Rate Mortgage changes how a physical place can be used, valued, financed, transferred, occupied, maintained, or reclaimed.
- **Community:** Adjustable-Rate Mortgage can create benefits inside one parcel while exporting costs or opportunity to neighbors, institutions, or future residents.

## Divination

The Promise enters the reading through Adjustable-Rate Mortgage. The issue is not only what is visible; it is which map of ownership, time, risk, authority, or belonging currently governs the situation.

**Question:** What future is being pledged through Adjustable-Rate Mortgage, and who receives protection if conditions change?

**Guidance:** Separate access from cost, payment from principal, and temporary liquidity from permanent viability.

## Game function

Moves Capital now and creates a future Claim with explicit priority and failure consequences. Initiative 4.

## Relationships

- **Sales Comparison Approach externalizes to Adjustable-Rate Mortgage.** Sales Comparison Approach externalizes to Adjustable-Rate Mortgage through a change in rights, information, cash flow, priority, timing, or physical use.
- **Fifteen-Year Fixed Mortgage constrains Adjustable-Rate Mortgage.** Fifteen-Year Fixed Mortgage constrains Adjustable-Rate Mortgage through a change in rights, information, cash flow, priority, timing, or physical use.
- **Adjustable-Rate Mortgage enables Interest-Only Mortgage.** Adjustable-Rate Mortgage enables Interest-Only Mortgage through a change in rights, information, cash flow, priority, timing, or physical use.
- **Adjustable-Rate Mortgage amplifies USDA Direct Loan.** Adjustable-Rate Mortgage amplifies USDA Direct Loan through a change in rights, information, cash flow, priority, timing, or physical use.

## Oppositions

- Use Value versus Exchange Value
- Speed versus Diligence

## Historical lineage and regulatory context

Read Adjustable-Rate Mortgage through the lineage of Residential Mortgage Products: earlier customary or local arrangements became recorded, standardized, financed, regulated, digitized, or contested over time.

Rules vary by jurisdiction and transaction. Use the cited primary sources as starting points and verify current local law, program guides, contracts, and professional standards before operational use.

## Visual direction

Text-free rounded-square enamel artifact for Adjustable-Rate Mortgage: a luminous claim-line descending from a built form into layered earth and extending across a long brass timeline; vitreous midnight enamel, blackened steel, warm brass, copper accents, mortgage-paper cream, deep green, slate, and sky blue.

## Engine output / Sentinel handoff

The generative interpretation above is preserved as Engine Output. Sentinel factors: jurisdiction-specific rules, factual uncertainty, financial risk. These factors request contextual review; they do not delete or silently rewrite the candidate.

## Research / provenance

- [Mortgage Resources](https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/) — Consumer Financial Protection Bureau; origination, disclosures, appraisal, servicing, mortgage regulation.
- [Fannie Mae Selling Guide](https://singlefamily.fanniemae.com/media/document/pdf/selling-guide-february-4-2026) — Fannie Mae; loan eligibility, underwriting, appraisal, delivery.
- [Freddie Mac Single-Family Seller/Servicer Guide](https://guide.freddiemac.com/) — Freddie Mac; loan eligibility, Loan Product Advisor, servicing.
