Interested in an Adjustable-Rate Mortgage? Here’s What You Need to Know
What is an adjustable-rate mortgage (commonly called an “ARM”)—and why might a homebuyer choose to get one?
Mortgage rates have risen dramatically in 2022. Some homebuyers are turning to adjustable-rate loans to keep monthly costs down. Adjustable-rate mortgages often have a lower interest rate for a period of time. However, like the name implies, ARM loans are adjustable—the rate can change! So, it’s important to understand how they work before you decide if this product is right for you. In this blog post, we will discuss the basics of ARM products, and why borrowers might choose them.