Why Get An Adjustable​ Rate Mortgage (ARM)?

What’s the longest time-period you’ve ever lived in a home?  Consider Jane and John Doe who are buying a new house with a $200,000 mortgage.  In this example:Expected ownership period is 7 yearsInterest rate / APR on a 30-year fixed rate loan is 4.5%Interest rate / APR on a 7-year adjustable rate mortgage (ARM) is 4%, and the rate is fixed for the first seven yearsAssume the worst-case scenario, and the interest rate / APR on the 7-year ARM goes up to the maximum possible rate of 9% in year 8 As you…Read more