An adjustable rate mortgage, often called ARM, has an interest rate that is not fixed. The interest rate varies based on one or many indexes.
It goes without saying interest rates can go up or down.
Therefore this type of mortgage loan can be a very viable option for people who are not too sensitive to fluctuating financing costs.
We always suggest exploring the fixed rate route as opposed to this option.
If you would like to learn more about ARM’s and how they work, we would be happy to discuss this with you.