Is there anything else I should know about ARMs?

It’s a good thing you asked because there is a tiny bit more to the wondrous world of adjustable-rate mortgages. It’s something we in the business call a cap, like the one you might wear on your head (shoulders, knees, and toes, knees and toes). Except here it’s more like a maximum or a limit.

• Initial cap: How much your rate can adjust the first time after your fixed-rate period has ended.
• Periodic cap: How much your rate can go up from one adjustment to the next.
• Lifetime cap: How much your rate can go up (or down!) over the life of the loan.

And if you truly want to know more about this kind of stuff, just reach out to one of our home loan gurus.