Adjustable rate mortgage (ARM) summary

Adjustable rate mortgages (ARMs) are one of the more fascinating yet poorly understood mortgage products available for today’s homebuyers. While it’s widely known that an adjustable rate can have a significant effect on interest payments depending on which direction rates move, not everyone understands how to measure the associated risks and rewards of ARMs vs. fixed-rate mortgages. Taking a moment to explore the unique components of an ARM will allow you to optimize your home financing decisions.