Question: What is an ARM in the mortgage world? Also what is the best loan for a home mortgage? Fixed? Flexible? I'm confused? You couldn't tell could ya? *giggle*

Answer: ARM = Adjustable Rate Mortgage, this should be avoided when you know that you are going to live in the same house for more than 5 years. ARM mortgage can be 3,5 or 7 yr ARM. In these first 3,5 or 7  yrs are generally fixed and then for rest of the term it is Adjustable.\nFixed rates are best these days if you can get a rate less than 6.75%. If you want to go for adjustable rate make sure there is a cap and it should not go more than 7% otherwise some times the interest payment can go higher than the principle. I am sure you don't want that.\nGood Luck with your Mortgage
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