Adjustable rate mortgages are extremely popular in South American and Europe but not particularly in the U.S. because they’re riskier than fixed rate mortgages (FRM). Particularly because many people purchased homes with ARM loans and when interest rates continued to climb their payments rose substantially over time.

Even though ARM mortgages are riskier, they can still be a great option for homeowners. They can save you money over the life of the loan, however, they can also end up costing more than if you locked in an interest rate with an FRM.

So in order to make the best decision on which loan to choose make sure to read this ebook on Understanding Fixed Rate Mortgages (FRM).  Since there are many different types of ARMs, this can help you understand the different types of ARMs available to you as well as the advantages and disadvantages of both.