Adjustable Rate Mortgage

Adjustable Rate Mortgages have an interest rate that can vary depending on the specific terms. ARMs generally offer a lower starting interest rate that is fixed for a period of time (1, 3, 5, 7 or 10 years), then the rate is subject to change annually for the life of the loan. This loan option is attractive to people planning to move or refinance within the initial fixed portion of the loan.