Adjustable Rate Mortgages - The Good, The Bad and The Ugly
Adjustable Rate Mortgages (referred to as ARMs) are loans with interest rates that change. Most ARMs start with lower monthly payments than Fixed Rate Mortgages because their interest rates are usually lower. But, before you go and jump into an ARM product, there are some serious considerations that you need to think about. Here are just a few:Is my current income enough or expected to increase enough to cover higher mortgage payments if interest rates go up? What other debt will I need to "take on" over the course of this mortgage, such as a vehicle loan or school tuition bill? Can I afford it all? How long do I plan to own this home? (If you plan to sell the home soon than rising...
