Pros and Cons of Adjustable-Rate Mortgages

Pros and Cons of Adjustable-Rate Mortgages
Adjustable-rate mortgages (ARMs) are popular because they usually start with a lower interest rate and a lower monthly payment. The lower rate (and lower monthly payments) may also allow a higher loan amount. However, the interest rate can change during the life of the loan, which would mean that your monthly payment would increase (or decrease).