Adjustable-rate mortgages generally have lower initial interest rates than fixed-rate mortgages.

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Adjustable-rate mortgages (ARMs) typically have lower initial interest rates than fixed-rate mortgages because borrowers take on more risk with ARMs. The interest rate on an ARM can fluctuate over time, while the interest rate on a fixed-rate mortgage remains the same throughout the life of the loan. However, it's important to note that the interest rate on an ARM can increase over time, leading to higher monthly payments for borrowers.

Adjustable-Rate Mortgages Generally Have Lower Initial Interest Rates Than Fixed-Rate