High interest rates have driven the cost of mortgages up by 40 to 50% or more over the last couple of years.

This, combined with a relatively stable housing market, at least as of this recording, has made

buying a home significantly more challenging. So this challenge now has many people wondering

if they should use an adjustable rate mortgage to keep their monthly payments down. But is that

really a good idea?

In today's episode, we'll discuss the pros and cons of adjustable rate mortgages

and help you decide if one is right for you.

This is another episode of Ready for Retirement.

I'm your host, James Cannell, and I'm here to teach you how to get the most of the life

with your money.

And now, on the episode.

Today's episode is based upon a listener question, and what you'll notice as a read off this question is some of the interest rates I'm referencing are very clearly not the

interest rates we have today. However, the principle behind this listener's question

is still very much the same. And that comes down to what is better in today's interest rate

environment. Is it better to get a fixed rate mortgage? Or is it better to get an adjustable

rate mortgage? I'll dive in more to that in just a second. But before I do so, want to read the

question. This question comes from John. And John says, my before I do so, want to read the question. This question

comes from John, and John says, my wife and I are looking to purchase a new home. The mortgage

broker is recommending a seven or 10-year arm, arm by the way, stands for adjustable rate

mortgage. The interest rate on the seven-year arm is 4.25%, and the interest rate on the 10-year

arm is 4.5% while a 30-year fixed mortgage is 4.25% and the interest rate on the 10 year arm is 4.5% while a 30 year fixed mortgage

is 5.25%. Does the savings of one of the adjustable rate mortgages justify taking the risk

...