WHICH MORTGAGE?

With the interest rate on traditionalfixed-term mortgages hangingaround historic lows, why wouldanyone choose an adjustable-ratemortgage (ARM)? Why not lock ina low interest rate for the life of themortgage? Well, if you plan to movewithin a few years, an ARM cansave you big money, particularly ifyou choose what's known as ahybrid ARM, where the interest rateis locked in for a fixed period andthen adjusts annually. If you choosea 5/1 ARM, you can shave almost afull percentage point off your mortgagerate compared with a 30-yearconventional mortgage. And in the5 years before the rate adjusts, thatlower rate could put several thousanddollars in your pocket.