• Will my income cover higher mortgage payments if the interest rate increases?
• Will I be taking on other sizable debts in the near future?
• How long do I plan to be in this home?
• Do I plan on making any additional payments or paying the mortgage off early?
• Show me the worst case scenario. Where could this interest rate adjust to?
• What is the annual cap? Some adjustable rate mortgages have payment caps.
• What are the maximums per adjustment period.

Things To Consider

• Monthly payments can change even if interest rates don't go up.
• Payments may not go down by much or at all if interest rates go down.
• Borrower could end up owing more money they borrowed, even all the payments are made on time.
• Paying off the ARM early to avoid higher payments could mean thousands of dollars in prepayment penalities