Adjustable Rate Mortgages (ARMS) For Home Purchases
Adjustable-rate mortgages normally offer lower initial monthly payments than fixed-rate mortgages. Other benefits of ARMs include: opportunity to qualify for a larger loan, lower payments, and the ability to save money in the short-term. Borrowers who are comfortable taking on risks or who feel their income will increase to cover possible payment increases often make this choice. Once the introductory period of the ARM is up, you may be able to refinance into a fixed-rate mortgage.