An Adjustable Rate Mortgage, or ARM, is a loan where the interest rate will change, depending on how the market is performing. When you get a 30 year FIXED it means that rate will not change where with an ARM it can. Now getting an adjustable rate mortgage sounds like it isn’t a good idea, because your interest rate can go up as much as it can go down, but there are certain situations where an ARM would be incredibly beneficial. One of the main areas an ARM would be a good option is if you know you won’t be living in the home for longer than 5-7 years. Interest rates for an arm lower AND locked for the first few years of your loan. So, let’s say you are a doctor going to medical school and you want to buy a house, but you know you won’t be there for longer than your residency. An ARM would be a perfect option for someone looking to save cash on the short term. Mortgage lenders and banks love advertising the “doctors’ loan”, but an ARM is actually the better loan in this situation, because it saves you much more money. Let us help you figure out the loan that works for your situation. We want to put you in the best position possible to be successful and if an ARM is what does it, we will give you all the information you need.