A loan that is a combination of an ARM and a fixed rate mortgage, the fixed rate set for a set amount of years, but later changes into an ARM, until the end of the loan period.  So, this type of loan is, for the most part, an ARM in the beginning, but later converts to a fixed toward the end of the life of the loan.                                                         

Advantages: low starting rate (compared to fixed rate)                                                                              

Disadvantages: higher rate than an ARM