Reasons for FRM Vs ARM

[Derek Kopp]

I've read different books that tell me that an FRM is better or an ARM is better. As someone looking to receive their agents license in what cases is one better than the other?

[Anthony Dooley]

Interest rates have been historically low for over 10 years. For this reason, a fixed rate is better because you lock in the low rate for the life of the loan. When rates adjust over the next 10,20,30 years they will most likely adjust higher which would increase your mortgage payments. If this was 1980 and interest rates were 18%, then an ARM would be a good idea, assuming they adjusted down from there.