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Reduce Risk
Adjustable Rate Mortgages (ARMs) are popular loans that provide lower
interests and lower monthly payments compared to fixed rate loans.
However, ARMs involve more risk since the interest rate typically rises
each year, and you can not predict with certainty what your monthly
payment will be.
In order to reduce this risk, you can refinance your ARM loan to a
fixed rate loan. You may pay a higher interest rate, and your
monthly payment may increase, however, you will reduce your risk.
Compare the
two types of loans using our ARM
vs Fixed Rate Mortgage
calculator.
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