Risks associated with adjustable-rate loans.
Understanding Adjustable-Rate Loans Adjustable-rate loans, commonly referred to as ARMs, are a distinct type of mortgage where the interest rate is not fixed for the entire term of the loan. Instead, the rate can change over time, often in relation to a specific index or benchmark interest rate. While ARMs can present an attractive option due to their lower starting interest rates compared to conventional fixed-rate loans, they come with inherent risks and complexities that borrowers should thoroughly understand before
Read more