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