With an adjustable-rate mortgage, both the interest rate and the mortgage payment can change over time. These changes are influenced by market conditions, which means your payments could increase or decrease. This type of mortgage offers flexibility, allowing you to potentially benefit from lower interest rates. However, it also comes with the risk of higher payments if interest rates rise significantly. It’s important to consider your financial situation and risk tolerance when choosing this type of mortgage. Understanding how market conditions can impact your payments will help you make an informed decision and manage your mortgage effectively.
*The information provided is for educational purposes only and should not be considered legal advice. For specific legal concerns or questions related to your mortgage, it is always best to consult with a qualified legal professional.*