Adjustable rate mortgages are normally written at lower interest rates than fixed rate mortgages.  Typical adjustable rate mortgages have a period of time that the rate is fixed and thereafter will adjust.  The normal ajustment periods that are offered are: 1 year, 3 year, 5 year, 7 year, and 10 year. 

Recently there has been a trend to shorter adjustables such as 1-month adjustables. 

The shorter the adjustment period the sooner the mortgage can begin to adjust to market swings. 

A 1 month adjustable can begin to adjust to market conditions almost immediately while a 10 year adjustable gives a stable interest rate for 10 years. 

It makes sense to accept an adjustable rate mortgage if a property will be sold in a short period of time.  If a person knows that within a certain period of time they are likely to move then adjustable rate mortgages are worth consideration.

Questions and comments regarding Adjustable rate mortgage information will be responded to promptly.