An adjustable rate mortgage is a type of home loan where the interest rate is not fixed, but rather adjusts periodically based on market conditions. This means that your monthly mortgage payment could go up or down, depending on economic conditions. There are several reasons why someone might choose an adjustable rate mortgage. One reason is that they may expect interest rates to go down over time, so they want to take advantage of lower payments in the future. Another reason is that they may want to keep their monthly payments low in the short-term, even if it means they’ll have to pay more interest over the life of the loan. Of course, there are also risks associated with adjustable rate mortgages. If interest rates rise, your monthly payments could become unaffordable. And if interest rates fall, you may end up paying more for your home than it’s worth. Before you decide to get an adjustable rate mortgage, it’s important to understand all the risks and potential rewards. Speak with a financial advisor to see if this type of loan is right for you.