Post by @brandyaguirreaz

That lower introductory rate can be tempting… but make sure you understand the tradeoff. 👀 With an adjustable-rate mortgage (ARM), your rate is typically fixed for a short period and can then adjust, potentially increasing both your interest rate and monthly payment. An ARM can be especially risky if your plan depends on rates dropping before the adjustment period begins. If you wouldn’t be comfortable with, or couldn’t afford, the payment if your rate goes UP instead, you should think twice (maybe three times 🥴) before choosing an ARM. We saw the risks of adjustable-rate loans play a role leading up to the 2008 housing crash, when some homeowners planned to refinance before their rates adjusted but were unable to when market conditions changed. That doesn’t mean ARMs are always a bad option. For some buyers, they can make sense. Just understand when your rate can adjust, how high it can go, and what your payment could eventually become. #mortgagerates #buyingahome #interestrates #arizonarealtor #arizonarealestate