The Real Estate Encyclopedia
What Is The Most Important Consideration With An Adjustable-rate Mortgage?
Category - Real Estate Information Sources - General Real Estate Information

The most important consideration with an adjustable rate mortgage is whether you will be able to afford considerably higher payments in the near future.  An ARM is much riskier than a fixed rate mortgage because your payments could change significantly.


Considering an ARM is safer, when interest rates are expected to fall and not rise, because when interest rates go up, you will likely pay much more for an ARM than for a 30-Year Fixed Rate loan.


If you agree to an ARM loan, be sure you know exactly what the terms are, as well as the increments the interest rate can increase to and how this would affect your monthly payments. 

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