Adjustable Rate Loans may offer initial lower interest rates, however, the rate will adjust, therefore, causing a difference in the monthly payment. Sometimes this difference is a small amount, however, many times it is the difference of several hundred dollars which can make a major difference in your monthly expenses making this type of loan unafforable. There are many pros to this type of loan (low initial rate, low initial payment, the lender may only be willing to give you this type of loan, etc.) but, be careful you can afford the loan when it adjusts.
