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ARMs VS. FRMs
Many people seem to have the misconception that ARMs are a horrible loan program in most cases.  While the idea of there being a possibility of your interest rate going up and be and is unnerving to many in a lot of cases they can actually be the best way to save money depending on your long term goals. 
The only time a FRM (Fixed Rate Mortgage) is a good thing is if the borrowers are planning on staying in the home for long term AND have good credit.  Almost always an ARM will have a lower start rate than a fixed rate mortgage will.  So if a borrower doesn't plan on being in the home for more than 5 or 7 years there is no point in them paying the higher interest rate of the fixed rate mortgage.  If they only plan on owning the home for 2 or 3 years then they can save even more on a 2 or 3 year ARM.  This would a lot of times fall into the realm of most first time home buyers.  They are usually just getting what ever they can afford at the time so that they can get into the market.  Most ... more

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