Many people choose to have an Adjustable Rate Mortgage (ARM) in order to take advantage of lower housing payments. Others choose an ARM when they aren’t sure how long they will stay in their home and when they expect a significant increase in property value.
How it works:
Your mortgage loan has an interest rate that is set for a period of time. After that period, it will adjust according to your loan specifications for up to 30 years. Your monthly payment will change as your interest rate changes.