An adjustable-rate mortgage (ARM) offers flexibility in your loan terms. With an ARM, your interest rate is typically fixed for an initial period, after which it can adjust periodically based on market conditions. If interest rates decrease, your mortgage payments may also decrease, potentially saving you money. Conversely, if rates increase, your payments may go up. This type of mortgage is suitable for those who are comfortable with potential rate adjustments and want to take advantage of lower initial interest rates. Consider an ARM if you plan to stay in your home for a shorter period or if you expect interest rates to decline in the future.