Mortgage rates Thoughts and more
If you intend to live in the home for a long time and you anticipate an increase in interest rates in the future, the increased expense that you pay today can result in considerable savings in the future. Adjustable rate mortgages (ARMs) Adjustable rate mortgages do offer lower interest rates at the outset, but interest rates and payments will likely change in the future. With adjustable rate mortgages, the interest rates are dependent on general interest rates or what is known as an index. Many adjustable rate mortgages are considered 'hybrid mortgages' and have a fixed introductory period of 1, 3, 5 or 7 years during which time the interest rate does not change. But other type of ARMs can reset at much more frequent intervals.