Reported 1 day ago
Adjustable-rate mortgages (ARMs) are making a comeback as buyers seek lower rates amid high conventional mortgage rates. Once stigmatized after the 2008 financial crisis, ARMs now account for 12.9% of originations, offering initial fixed rates for several years before adjusting. While they present potential savings compared to 30-year fixed mortgages, borrowers face risks of rate hikes after the fixed period. However, more stringent qualification standards and protections against drastic increases make today's ARMs different from those of the past.
Source: YAHOO