August 9th, 2022 How to buy a home during a housing shortage

The Best Mortgage For You: An Adjustable-rate Mortgage (ARM)?

An adjustable-rate mortgage (ARM) is a type of home loan in which the interest rate changes after a designated period of time has passed. This can typically be 3, 5, 7 or 10 years depending on the program type. For example, a 30-year fixed-rate mortgage would be the same interest rate throughout the entire loan term. However, with an ARM the interest rate begins to adjust after that initial fixed period.

The average buyer automatically rules out an adjustable-rate mortgage (ARM) because of the perceived risks. If you're considering an ARM, you'll want to look into the terms and see how they compare to fixed-rate mortgages. The most important thing to know is that an ARM is an adjustable-rate mortgage. This means that the interest rate on your mortgage can change over time. 

An ARM could be beneficial if you think that the home you are trying to buy will only be your home for a few years. Upgrading to a different home before the fixed-rate period ends could mean that you will avoid the adjustable rate altogether. This saves money and reduces risk if rates are going up.

Be patient. We are seeing a shift in the market right now, with more sellers listing their homes. This is good news for buyers because it means more inventory. The number of new listings rose by 10% from the previous week, which is a good sign for buyers. There were 4,857 active listings in the past week, according to That's up from the 3,766 active listings that were recorded during the same week last year.

In conclusion, ARM loans are great if you can use a lower initial interest rate to make the home you want affordable and have an exit strategy. 

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