Three Reasons To Consider An Adjustable Rate Mortgage
When you are applying for mortgages, you will encounter two types of products: adjustable rate mortgages (ARMs) and fixed rated mortgages. With a fixed rate mortgage, the interest rate remains the same for the life of the loan. Even if market interest rates increase or decrease, your rate remains the same.
An ARM adjusts its interest rate periodically based on a specified index, such as the prime interest rate. Check out a few reasons that an ARM might be the right type of home loan for you.