Interpreted Prediction
Adjustable Rate Mortgages (ARMs) are considered very risky and are only advisable if one is completely certain they can pay off the loan within the initial promotional rate period.
AI Evaluation Notes
Given the increase in interest rates since December 2025, ARMs have become riskier due to potential payment increases. While not all ARM borrowers will face hardship, the overall risk associated with these mortgages has increased, making the prediction directionally correct but not definitively verifiable without specific borrower data.