ARMs gain fans Adjustable-rate mortgages, as a percentage of all mortgages.
And as the gap narrows between interest rates for fixed-rate mortgages and ARMs, it's becoming harder for shoppers to find a home loan that gives them a fighting chance to save money with a variable interest rate. Alan Wyngarden, a Denver mortgage broker, says of the array of ARMs on the market today. ARMs, including hybrids, have surged in popularity in the past year as home buyers seek refuge from the rising cost of traditional fixed-rate deals. ARM borrowers forgo long-term security for a lower initial rate, and they're gambling that they'll still have a competitive interest rate when the adjustments begin. The risks Experts worry that too many ARM shoppers allow themselves to be seduced by the initial, ''teaser'' rate.