Your initial interest rate will be lower than a fixed-rate mortgage, so you may be able to afford more home. You are protected against interest rate increases for the first three, five, seven, or 10 years of the loan, depending on which type of fixed-period ARM you choose. You may have the option to convert your ARM to a fixed-rate mortgage at the first, second, or third interest rate adjustment dates. You have time to improve your financial position (i.e., salary increases) or accumulate additional assets before the interest rate adjusts at the end of the fixed period.