Interest rates for the Arizona adjustable rate mortgage tend to be far lower than the Arizona fixed rate mortgage, but this rate adjusts at predetermined times over the years.
In the early years, borrowers can take advantage of the lower rate to purchase a larger Arizona home, and enjoy lower payments. Over time, this rate will adjust, going higher or lower, depending on the current market.
You may be able to find a Hybrid Arizona ARM, in which the interest rate is fixed for many years, then later adjusts only once for the remainder of the term. Your Arizona loan officer can help you choose the best Arizona loan for your own situation.
The Federal Reserve Board has a helpful document that explains the basics of a Arizona Adjustable Rate Mortgage:
Consumer Handbook on Adjustable-Rate Mortgages.pdf (707.82 kb)
Adjustable Rate Mortgage - HTML Version
Links:First Option MortgageFirst Option LendingAdjustable Rate Mortgage at First Option MortgageAdjustable Rate Mortgage at First Option Lending