An adjustable-rate mortgage (ARM) can be a smart choice for buyers who want lower initial monthly payments and plan to move, refinance, or pay off their loan before the rate adjusts. Because ARMs typically start with a lower interest rate than fixed-rate mortgages, they can make homeownership more affordable in the short term, freeing up cash for other expenses or investments. This option can also benefit buyers who expect their income to grow over time, as they can take advantage of the lower upfront costs while preparing for potential future adjustments. In a high-interest-rate environment, an ARM offers flexibility and the opportunity to lock in savings during the early years of homeownership.
