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Adjustable-Rate Mortgages (ARMs)
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I'm trying to wrap my head around how exactly the payments on my adjustable-rate mortgage change over time. The bank's explanation was kinda confusing, you know? Anyone here dealt with this before and can simplify it a bit?
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Yeah, banks love their jargon, don't they? I remember when I first got mine, the guy at the bank made it sound like rocket science. Basically, your payments start off lower (which feels awesome at first), but after a set period—usually a few years—they adjust based on current interest rates. If rates go up, your payments do too...ouch. Did your bank mention how often your rate adjusts? Mine's yearly, but I've heard some adjust more frequently.
