Buying a house is expensive. Sometimes it takes every dollar you can scrape together. But there's a way to lower payments during the first years of ownership. An ARM comes with an introductory rate that's definitely special - and one that can buy you time to rebuild your savings and make other purchases.
- Lock in low interest rates for 5, 7, 10 or 15 years.
- After that, prepare for interest rates to be adjusted on a semi-annual basis.
- Get protection from caps that limit how high your rate can go.
- Profit even more should interest rates decrease over the life of the loan.
- Consider this loan if you expect your income to rise in the near future, or you plan to move again before the introductory period ends.