Buying a house? Found a genuine lender who offers the low interest rates? Have done your research on type of mortgage? If the answer to the last question is no, you must read on, as the lenders have various types of loans to choose from and its upto you to make the right decision.
Adjustable-rate mortgages, or ARMs, differ from fixed-rate mortgages in that the interest rate and monthly payment move up and down as market interest rates fluctuate.
Most have an initial fixed-rate period during which the borrower's rate doesn't change, followed by a much longer period during which the rate changes at preset intervals.
Adjustable rates start low