The Pros and Cons of Adjustable-Rate Mortgages
Adjustable-rate mortgages (ARMs) are a type of home loan that offers a variable interest rate that can change over the life of the loan. Unlike fixed-rate mortgages, the interest rate on an ARM can increase or decrease based on market conditions. ARMs are popular among homebuyers who are looking for a lower initial interest rate, but they come with risks and rewards that borrowers should carefully consider before deciding to take out an ARM. In this article, we'll look at the 10 pros and 10 cons of adjustable-rate mortgages.