Unlike the more popular fixed-rate mortgage loans, ARMs can offer temporary relief for homebuyers who want to avoid paying higher mortgage rates — however, they also come with risk. That means when mortgage rates increase, many ARM loan holders, like Hernandez, experience the unpleasant shock of significantly higher monthly home payments. Mortgage rates have remained elevated, adding fuel to one of the most unaffordable housing markets in decades. To Hernandez, it made little sense to refinance the loan while the 30-year fixed mortgage rate remains higher than her new adjusted rate. Marquis said that taking out an ARM loan might be worthwhile for those with a higher risk appetite.

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Persons: Jennifer Hernandez, Houston, Hernandez refinanced, homebuyers, ­, Hernandez, Lorriane Jones, “, blindsided, ”, I’ve, “ I’ve, ” Andrew Marquis, ” Marquis, Marquis, hasn’t, “ I’m Organizations: CNN, ARM, Intercontinental Exchange, ICE, Mortgage, Association, Federal Reserve Locations: Southern California, Lexington , Massachusetts