When Do Adjustable Rate Mortgages Make Sense?
When considering the type of loan that you want to obtain, you might want to consider an adjustable rate mortgage loan (also referred to as an ARM). An ARM may make sense if:
- you are confident that your income will increase steadily over the years
- you anticipate a move in the near future and aren’t concerned about potential increases in interest rates
ARMs generally offer lower initial interest rates. Monthly payments can be lower. And they may allow you to qualify for a larger loan amount.
Make sure you understand the terms, risks and potential costs and compare all options before deciding. The attorneys at Ballaga & Freedman, LLP, can help explain any questions you may have regarding how an ARM works or whether it will work for you. Please contact us at your convenience.