ARM is an adjustable-rate mortgage or ARM that has an initial
unchanged interest rate for seven years, which adjusts once per
year thereafter according to market changes. Statistics
show that homeowners sell or refinance every 5 to 7 years which
makes a 7/1 ARM a comfortable loan option for many borrowers.
A 7/1 ARM typically offers a lower initial monthly payment and
lower payments over a shorter period of time. Also, rates
and payments may go down if rates improve. With a 7/1 ARM
you may also be able to qualify for a higher loan amount than
with fixed rate financing.