My little forum on home loan rates
Normally, an adjustable home mortgage rate will start off lower than a comparable fixed rate for a 30 year mortgage. But if interest rates go up, your payments will go up. Fortunately, many adjustable rate home mortgages come designed with a rate cap, which will limit the number of percentage points your rates can go up. The most important part of deciding on the best loan for you is having a thorough understanding of your acceptance of risk, as well as a plan for the amount of time you will own the home. If you plan to stay in your home only a few years, it's possible for you to save money by choosing an adjustable rate home mortgage with a lower fixed rate for the first few years of the loan.