Adjustable rate mortgage loans or ARM's as they are called are useful in purchasing real estate. You want to know what Index the rate is tied to and you also want to know how, when and the amount they can adjust by. You also want to have enough reserves so that if a loan does adjust you can still afford it. This type of lending instruments is not for the buyers that are counting on their mortgage being fixed to a certain amount. Considering the fact that a lot of people turn over a home on average of 7 years and ARM can be attractive. It is a bit of a gamble and you are betting the loan will not adjust to a point of being unaffordable to you.

I am not a mortgage broker however I can recommend good peolple to work with.