Adjustable rate mortgage loans are most attractive to borrowers when
However, just because ARM rates are low initially, doesn't mean that an adjustable-rate mortgage is right for every borrower today. It all depends on the borrowers' goals, DiBugnara said. ARM loans make the most sense for borrowers who don't plan on living in a home for more than five or seven years. Taking out an adjustable-rate mortgage is very attractive to mortgage borrowers who have, or will have, the cash to pay off the loan before the new interest rate kicks in. Adjustable rate mortgages (ARMs) can save borrowers a lot of money in interest rates over the short to medium term. But if you are holding one when it’s time for the interest rate to reset, you may