Adjustable Rate Mortgage Loans

An adjustable rate mortgage loan (also known as an ARM, or a variable rate mortgage) is designed so the interest rate can change over the life of the loan. Your monthly payment will rise and fall along with the rise and fall of your interest rate. Adjustable rate mortgages usually have a lower starting rate. However, the rate can fluctuate unpredictably, thus making it harder to budget for. Adjustable rate mortgages are ideal for homeowners who plan on moving within a few years, or if you are expecting significant income growth over the next few years.