With adjustable rate mortgages, also known as variable mortgages, the interest rate and the amount of money you repay change.

These changes are out of your control.

So why, you may ask, would anyone be mad enough to consider a variable mortgage?

The thing is, these mortgages usually have a significantly low interest rate to start with. Lower than that of an equivalent fixed interest mortgage. Therefore these mortgages are much more affordable at first. And this 'honeymoon' period can last anything from one month to seven years.

But then, the rates - and therefore mortgage payments - change. They almost always go up at first. And then they keep changing.

Returning to the question of mad people and adjustable rate mortgages, lots of extremely sane people do consider this type of mortgage. For reasons such as these:

1. Adjustable rate mortgages make buying a first home possible for lots of people.

2. Some people use adjustable rate mortgages as powerful tools to get into the housing market. They buy somewhere, sometimes with friends or family, build up some equity (added value) in that first home, sell it on and get a lot more cash to buy the home they do want.

3. Some couples take out adjustable rate mortgages because one partner in the couple is finishing training to get a well paid job or promotion. They are confident that their income will soon increase to support rate increases.

4. Some have bought homes with adjustable rate mortgages, knowing that they will be moving in a specific time frame. Meanwhile, they want to benefit from lower mortgage repayments.

Many people, however, are enticed into buying their first home with a variable mortgage simply because the initial low interest does bring their dream home within reach.

If that's what you're considering, here is a question for you: Are you also preparing for the inevitable rise in mortgage payments? Have you made a note, somewhere prominent, reminding you to confirm the date your interest rate will increase and put the date in your diary?

It's worth doing because that simple act alone could save you a lot of grief several years down the line when you're busy living your life with a million other (hopefully joyful) concerns.

Yes, adjustable rate mortgages are risky. But did you know you can make this type of mortgage really work for you if you choose your mortgage carefully and make a few simple preparations? Discover which adjustable rate mortgages are best for you, and some simple yet powerful ways to get the best performance from them, by visiting http://firsttimehomemortgage.muxgo.com

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