Two popular mortgage products are the Adjustable-Rate Mortgate (ARM) and the Fixed-Rate Mortgage. Consider the good and bad of each before choosing one:

The GOOD –  

Adjustable-rate mortgages have lower rates and payments early in the loan., making them more affordable.  ARMS make sense for people who expect their income to rise or to sell their home in the near future.

Fixed-rate mortgages promise stability despite inflation, allowing borrowers to manage their money better.

The BAD –

ARM rates and payments can rise sharply at the end of the introductory term.

When interest rates are high, fixed-rate loans may call for a monthly payment that is too expensive for some borrowers’ budgets.