The huge difference in ARM mortgages and fixed rate mortgages is the fact that an ARM mortgage has an interest rate that changes periodically, usually in relation to an index, and these payments may go up or down. A fixed rate mortgage stays the same throughout the life of the loan. So choose wisely and research your options before you dive right in.
An ARM mortgage might be the riskiest and most complicated loan. ARM mortgages may be tempting with their low minimum payments at first when the rates are good, but when the rates get adjusted, they can sky rocket your payments. The good thing is that the ARM mortgage option has brought a new group of buyers who could not afford a fixed rate.
