You actually have to qualify where you're able to pay for a rate that has adjusted upward. So there are fewer people who can qualify for ARMs.
Zhao thinks many people overlook an attractive financing opportunity in the housing market by not considering an ARM.
Unlike a fixed-rate mortgage, which has a consistent rate throughout, ARMs can fluctuate based on market conditions after an initial fixed-rate period.
There are fewer ARMs out there now than in the early 2000s. Pre-financial crisis, ARMs made up about a third of all mortgage originations.
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