Most people including homeowners fear things they don’t understand. This fear leads people to not try different solutions that might be a benefit to them. Prospective buyers know about fixed rate mortgages and have long memories when it comes to stories about people losing their homes because they could not afford the payments once their adjustable rate mortgage went up.
However, the interest rates on fixed-rate mortgages have been really low for long enough that borrowers aren’t very interested in adjustable rate mortgages. There have been changes in adjustable rate mortgages that make them much safer for borrowers who have an understanding of the way they work. Adjustable rate mortgages are aimed at prospective buyers who will only be in their homes for a limited time period.
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