An adjustable rate mortgage is sometimes called an ARM for short. Read the linked portion (How to Choose Between a Fixed-Rate and Adjustable-Rate Mortgage) of this article for some tips on how to choose between fixed-rate and ARMs, stopping after the Pro/Con chart the article provides.

- Decide which type of mortgage each person listed here might choose.

1. Carl, who is living in Lexington with his gf until she finishes her med school program


2. Tanya, who’s worked out a budget that allows her to pay her mortgage and save for her three young children’s college funds


3. Kristie, who needs lower payments for a few years until she’s done paying off her student loans, and who thinks she could then afford far greater payments.