An adjustable rate mortgage (ARM), in the United States, is a type of mortgage loan in which the interest rate paid by the entity changes or adjusts throughout the term of the loan. - instroreview.com

This type of mortgage loan , that is, an ARM is a mortgage loan where the interest rate varies throughout the loan

In other words, this rate always behaves as shown by the economy. are adjusted based on

Therefore, at the beginning of the loan we would see that the interest rate is low and attractive, but over time, depending on how the economy develops, it can increase rapidly

Instead, we have a mortgage with a fixed interest rate has

In which an agreement is made with the entity and a fixed interest rate is established, which will not change and will remain stable until the end of the loan

Why does the interest rate on an ARM vary?

As we can see in economic indicators, economic growth , inflation and in general, the economy is not something static

presents a behavior that changes over time

but the situation may change tomorrow. In other words, interest rates may rise and with it, the cost of money.