ARM
This loan is good if you’re going to be in your home for less than 5 years or if you want more home for your money with future income increasing.

This is a fixed rate mortgage for short period of time on a 30 year amortization schedule. Then after one, three, five, seven or 10 year period rate adjusts with an index and margin. Adjustments, up or down, have caps for first adjustment, every successive adjustment and lifetime maximum.