What’s best for me – an ARM or Fixed?

This question has puzzled many people when they go to purchase or refinance a home: “Should I get a low adjustable-rate mortgage (ARM), or go with the security of a fixed?” While it is true that a fixed-rate mortgage (FRM) can provide more security, it is also true that an ARM can provide more immediate savings with a lower rate and payment. There are a few things that you need to understand and questions that you need to answer before you decide on one over the other.
An adjustable-rate mortgage will almost always start with a very low introductory rate. This introductory rate is typically fixed for 2, 3, 5, 7, or 10 years; within that period, neither the rate nor payment will increase. After the fixed period is up, the rate may or may not increase. These mo View the rest of this article