Adjustable Rate mortgages (arms) adjustable rate Mortgages are variable rate loans. After the initial fixed-rate period, your interest rate can increase or decrease annually according to the market index which is affected by economic conditions.
The initial interest rate on an adjustable-rate mortgage is always extremely attractive. Who wouldn’t want a rock-bottom rate on their mortgage? Rate lock options as long as 10 years. If you don’t plan on paying off your mortgage, then an adjustable rate mortgage could work in your favor.
5 And 1 Arm 7 arm rates adjustable-rate mortgages include an initial interest rate that is usually lower than a fixed rate. But when that initial. 7/1 Adjustable Rate Mortgage (7/1 arm) adjustable rate mortgage. the rate is fixed for a period of 7 years after which in the 8th year the loan becomes an adjustable rate mortgage (ARM).