How does adjustable rate mortgage work
The adjustable rate mortgage is a bit more complicated to understand but could work out as a better choice in some situations. What is an adjustable rate mortgage? When you have an adjustable rate mortgage, the interest rate on your loan will change over time. There are several reasons why a home buyers may opt for an adjustable rate mortgage, including: If you plan to sell your home or refinance before the end of the initial rate period; Anticipate your income rising enough in the coming years to cover higher mortgage payments; Want the initial lower