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