Ann Carrns | The New York Times

ARMs haven’t been much in demand in recent years because rates on predictable, fixed-rate mortgages remained low. They also earned a bad reputation in the financial crisis, when underqualified borrowers lured in by the initially low interest rates were unable to keep up payments when they rose.

Laws passed after the financial crisis made ARMs “much safer and more transparent than they used to be,” said Eric Stein, senior vice president at the Center for Responsible Lending.

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