1 Year ARM Rate Mortgage
A 1 year ARM rate mortgage is a very risky type of loan to get because if interest rates go up there could be a big jump in your mortgage payment.
Interest rates fluctuate frequently which makes the 1 year adjustable rate mortgage the most risky. The 1 year means the adjustable rate is actually fixed for 1 year and then it's subject to change up or down depending on what the new interest rates are.
Right now current interest rates are very low so getting a 1 year arm rate could be incredibly risky. You can get a rate of about 5% right now so by gambling the ARM rate what can you get out of it? Maybe the rates will lower to 3% before they start going back up again? I doubt it, but even if they do you still haven't gained all that much.
The risk is much higher than the reward in this situation because the interest rates are so low. If rates were over 10% it might be a good gamble to take but even then there are other options to lower your rate.
If you got an initial interest rate of 10% and rates went down to 5% you could refinance for a small fee and make all that money back within 2-3 months. So why gamble with the ARM rate and risk your mortgage payment increasing each year?
Use a mortgage calculator on my website to help you with the differences in mortgage payments. Also add 2% to the interest rate on the calculator to see what that payment will be if rates do go up after a couple years. That will help put the reality of the new payment in your mind. | 
