When rates of interest are low (as they have actually been during the real estate crunch), you can refinance your loan to secure the lower rate. For more on refinancing, see listed below. The very first advantage of ARMs are that your monthly payments, at least for a time, will likely be lower than repaired rate home mortgages.For example, throughout this extended housing crunch, rate of interest have actually gone steadily lower and are currently at historically low levels. Those with ARMs have benefitted by paying less in interest each month (although since of interest caps, it's likely that ARM holders haven't had the ability to take full benefit). Some lending institutions will offer lower, discounted initial rate of interest for ARMs than for repaired rate loans.