A lot of people use the ARM loan with the goal of refinancing before the first adjustment period. (homebuyinginstitute.com)
Some vacation home buyers choose ARM loans for the lower initial mortgage rate, and then refinance before the first adjustment period. (bpfund.com)
-- One cap restricts the amount the interest rate can change at the first adjustment, the second restricts the amount the interest rate can change every adjustment period after the first adjustment period, and the third cap restricts the maximum interest rate you can pay for as long as you have the mortgage. (pnc.com)