As interest rates shoot up, some buyers are turning to a different, and slightly more risky type of mortgage.
Adjustable-rate mortgages, known as ARMs, have seen an uptick in popularity recently as home shoppers, eager to avoid soaring interest rates amid a torrid housing market, are turning to these loans in order to nab a cheaper rate.
“People are looking at ways to bring down their housing costs and their mortgage payments and with an adjustable-rate mortgage, it gives you the possibility of having a lower monthly payment initially, ” said J.C. de Ona, southeast division president of Centennial Bank.
