Interest rates for the Illinois adjustable rate mortgage tend to be far lower than the Illinois fixed rate mortgage, but this rate adjusts at predetermined times over the years.
In the early years, borrowers can take advantage of the lower rate to purchase a larger Illinois home, and enjoy lower payments. Over time, this rate will adjust, going higher or lower, depending on the current market.
You may be able to find a Hybrid Illinois ARM, in which the interest rate is fixed for many years, then later adjusts only once for the remainder of the term. Your Illinois loan officer can help you choose the best Illinois loan for your own situation.
The Federal Reserve Board has a helpful document that explains the basics of a Illinois Adjustable Rate Mortgage:
Consumer Handbook on Adjustable-Rate Mortgages.pdf (707.82 kb)
Adjustable Rate Mortgage - HTML Version
Links:First Option MortgageFirst Option LendingAdjustable Rate Mortgage at First Option MortgageAdjustable Rate Mortgage at First Option Lending