ADJUSTABLE RATE MORTGAGES (ARM)

Adjustable Rate Mortgages (ARMs) are a type of home loan where the interest rate is variable and can change over time. During the initial period, rates (and monthly payments) will typically be lower than those offered by fixed-rate loans. Most ARMs are hybrid; they are fixed for a period of time, usually 5, 7, or 10 years, before being subject to adjustments.