Renegotiable Rate Mortgage Definition

A renegotiable rate mortgage is a type of mortgage that allows the interest rate to be periodically renegotiated. While an adjustable rate mortgage uses an external index to regularly adjust the mortgage rate, a renegotiable rate mortgage typically has other terms. Individuals contemplating a renegotiable rate mortgage should carefully examine the terms-both when the interest rate can be adjusted as well as how it can be adjusted.