Get a lower initial interest rate
Adjustable Rate Mortgage (ARM) loans generally begin with an interest rate that is below a comparable fixed rate mortgage, and could allow you to plan for future changes when financing your home. However, the interest rate changes at specified intervals (for example, every year) depending on changing market conditions.
Short Term Solutions
Sometimes it makes sense to use an adjustable-rate mortgage for a short-term financial situation.
An ARM loan starts at a lower fixed rate for an initial period of time, then adjusts to market conditions periodically after that.
Sometimes you need a non-traditional option to meet your current financial situation. Your mortgage professional will discuss ARMs and other special kinds of mortgages that fit your specific financial situation with you when you meet with them.
