Are rising mortgage rates pricing you out of the home of your dreams? You may not need to change your plans … just your loan type. That’s where an adjustable-rate mortgage (ARM) comes in.
While fixed-rate loans keep the same interest rate for the life of the loan, ARMs typically offer a lower rate for an initial term, after which the rate adjusts up or down to reflect current market rates. With the lower initial rate, you may be able to afford more house than with a fixed-rate loan, allowing you to get the home you want at a price you can afford.