Definition

• Adjustable-Rate Mortgages with low initial interest rates that adjust over time.

Ideal Borrowers

• Short-term homeowners or those expecting future income growth.

Down Payment

• Typically none required for refinancing.

Benefits

• Low initial interest rate

Usage Limit

• No restrictions.

Strengths

• Versatility in catering to different borrower profiles

Considerations

• May have higher requirements for credit and down payment