Adjustable Rate Mortgages (ARMs)
1 Year ARM
3/1 ARM
5/1 ARM
7/1 ARM
10/1 ARM


ADVANTAGES:
*Lower initial monthly payment
*Lower payment over shorter period of time
*Rates and payments may go down if rates improve
*May qualify for higher loan amounts

DISADVANTAGES:
*More risk
*Payments may change over time
*Potential for high payments for high payments if rates go up