An adjustable-rate mortgage (ARM) is a home loan where the interest rate can change over time. This means your monthly payments may increase or decrease. The starting interest rate on an ARM is usually lower than a fixed-rate mortgage, but at specific points during the loan, both the rate and your payments can adjust.
An ARM begins with an introductory fixed interest rate, which then adjusts once that initial period ends. The rate can rise or fall depending on the agreed-upon index. Period terms are set from the start and typically range from 5, 7, or 10 years.
An ARM begins with an introductory fixed interest rate, which then adjusts once that initial period ends. The rate can rise or fall depending on the agreed-upon index. Period terms are set from the start and typically range from 5, 7, or 10 years.
An adjustable-rate mortgage (ARM) has interest rates that can change over the life of the loan. During the initial fixed period, the rate stays the same, but once that period ends, it can fluctuate with the market at each adjustment. In contrast, fixed-rate loans maintain the same interest rate throughout the entire term, no matter how the market changes.
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