Benefits
Low Introductory Interest Rates
Most ARMs start with a lower introductory interest rate that stays the same during a fixed-rate period.
Lower Monthly Payments
Lower introductory rates typically mean lower monthly payments during the fixed-rate period.
More Payment Against Principal
You can pay extra toward your mortgage’s principal balance to build equity faster – and reduce the amount of interest you’ll owe later.
No Prepayment Penalties
With an ARM, you have the option to refinance to a fixed-rate mortgage.
