This is the method that results in the lowest total amount of interest paid over time, which means more money over the long run that stays in your pocket. (thesimpledollar.com)
They do it to reduce their payments and the total amount of interest they pay on the loan. (homebuyinginstitute.com)
Why it matters: This is an important topic for anyone considering an adjustable mortgage product, because it affects the monthly payments as well as the total amount of interest paid over time. (homebuyinginstitute.com)