 TITLE: What Is an Adjustable-Rate Mortgage? CONTENT: When Is an Adjustable-Rate Mortgage a Good Idea?\n------------------------------------------------\nThere are a few situations where it may be worth considering an ARM over a fixed-rate mortgage. Here are some of the more common ones:\n*   **To meet debt ratio requirements**: Getting an ARM can help you pass the debt-to-income (DTI) test lenders consider when reviewing your mortgage application.\n*   **Interest rates are high**: If you have good reason to believe that interest rates are high and may come down, it may not make sense to lock yourself into a high rate. With an ARM, your interest rate can go down over time as market rates change.\n*   **You're planning on refinancing**: If interest rates decrease significantly during your initial fixed-rate period, you may opt to refinance your loan at the lower rate rather than risking it going back up again on your ARM.\n*   **You're anticipating a move**: The average homeowner stays in their home for just over eight years, according to ATTOM Data Solutions. But if you think you won't outlast your ARM's initial fixed period, it may make more sense to take the lower monthly payment and save money. If your plans change, though, it could end up costing you more over time.\nIf you are approved for an ARM, be sure to carefully consider whether you will be able to handle higher payments in the event your ARM eventually adjusts higher. Otherwise, the risk could ultimately force you to sell the home or even default on the loan. END