With adjustable-rate mortgages, the interest rate adjusts at set times based on certain economic indicators. If you got an ARM at a time when interest rates were low and got a low monthly payment, then you may be concerned as the time nears when the ARM adjusts and you must make larger payments.
To assess the situation, first look at your contract. It will tell you to what index your interest rate adjusts and the margin that is added to calculate the full rate. From this information, you can calculate the rate on your loan when it does adjust. Paired with knowledge of your outstanding balance, you can calculate your new monthly payment.
If you're planning to stay in the home for a long time, then you should consider how your monthly spending plan will look after the interest rate adjusts and whether it might be advisable to refinance with a different type of mortgage.
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