Homebuyers Can Save Over $15,000 in Five Years With an Adjustable-Rate Mortgage–But It Comes With Risks

Source: Redfin — 

That’s $260 per month for the typical homebuyer—the largest savings since at least 2015. As mortgage rates surge, demand for adjustable-rate mortgages is on the rise because they typically have lower interest rates than 30-year fixed loans.

The typical homebuyer could save an estimated $15,582 over five years, or roughly $260 per month, by taking out an adjustable-rate mortgage rather than a 30-year-fixed-rate mortgage. That’s the largest savings in dollar terms for adjustable-rate mortgage holders since at least 2015.