Understanding Missouri adjustable-rate mortgages
An adjustable rate mortgage (ARM) can help you get into a new home. It’s an option to consider, but there are risks. ARMs start out with low monthly mortgage payments. Then when it’s time to adjust, ARMs change from a fixed rate product to a variable rate meaning that interest rates will increase or decrease depending on what’s happening in the economy. If the rate increases, it’ll cause an increase in the borrower’s mortgage payment. That’s why before considering an ARM, borrowers need to be sure they’ll be able to afford higher mortgage payments, if that happens.
