An adjustable-rate mortgage, or ARM, can seem like an enticing offer, as they often offer initially lower rates than the more standard fixed-rate mortgage. But later on, the rate is subject to change based on wherever mortgage rates head — and that certainly can be upward, leaving borrowers with higher payments as a result.

Still, more buyers are increasingly willing to take that gamble, given the current housing market that has left some “desperate for affordable monthly payments when home prices are up more than 50% since 2019 and are near all-time highs,” said The Wall Street Journal . Many people are accepting ARMs in the hopes that “mortgage rates will fall in the coming years, enabling them to refinance before the fixed terms of their ARM loans expire.” But there is no guara

See Full Page