Why get an adjustable rate mortgage instead of a fixed rate mortgage?

Traditionally, an adjustable rate loan has a lower interest rate than a fixed rate loan. So that is attractive with a smaller payment. But it does add risk once you are past the initial fixed period, and enter into the adjustable period. That risk isn't for everyone. On the other hand, why pay a higher 30-year rate when you can get a lower rate? Especially if you don't plan on being in the loan much longer than the initial fixed rate period. For example, if you get a 7/1 ARM (fixed for the first 7-years), and you think you will move in less than 7-years, there is zero risk for the adjustable loan. I offer both fixed and adjustable loans in MN WI IA SD ND. Find me at JoeMetzler.com. NMLS 274132