When shopping for an Adjustable Rate Mortgage be sure to review the loan terms including adjustment caps with your loan officer. This will help to determine when the first potential adjustment could take place and what the maximum rate change could be. With this information you can property plan for a potential payment increase at this point or to refinance prior to this date.
The Consumer Finance Protection Bureau (CFPB) has released a great informational brochure to answer all of your questions. Learn about Adjustable Rate Mortgages and ask us if you have any questions!