As Mortgage Rates Surge, Adjustable-Rate Loans See Renewed Interest
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Adjustable-rate mortgages (ARMs) are gaining popularity as fixed mortgage rates rise to highest levels in decades.
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ARMs offer lower rates than fixed mortgages initially, but rates reset periodically based on market rates.
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Stricter regulations have made ARMs less risky than before the housing crisis, but rates can still increase significantly.
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ARMs may provide short-term savings for some buyers planning to move within 5-7 years.
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Financial experts advise buyers to pay off ARM within fixed period or choose fixed rate if income is tight or unlikely to rise.