The rate is usually fixed for either one, three of 5 years, then begins to float
Usually helps borrowers get a lower rate/payment at the beginning
The risk is that if interest rates rise, a borrowers payments may go up dramatically
ARMs were a contributor to the 2008 Mortgage crisis
When rates on many mortgages reset from fixed to floating, many borrowers couldn't afford their payments
Warnings and Disclaimers
Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal financial situation - we are not investment advisors nor do we give personalized investment advice. The opinions expressed herein are those of the publisher and dare subject to change without notice It may become outdated an there i no obligation to update any such information.