Many home owners dont expect to stay in their homes for very long anymore. This may be part of the reason why ARMs are so popular these days. And in fact, if you dont plan on being in your current mortgage for more than five years, an ARM may very well be the best loan for you. ARMs start at a lower rate than a comparable fixed rate loan and allow you to save interest dollars that you can allocate elsewhere in your portfolio.

A great alternative to an ARM mortgage is the interest only mortgage. The interest only mortgage allows you to have a fixed rate and a low payment as well. However once the interest only period expeires the loan payment will increase so that the loan is paid off within the loan terms. Interest only mortgages generally have interest only terms of 10-15 years.

 

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