2 scenarios when to consider an adjustable-rate mortgage to secure lower rates, according to Redfin's research lead

• Adjustable-rate mortgages, or ARMs, have gained a bad reputation after the 2008 housing crash.
• Chen Zhao of Redfin believes that more homebuyers should consider getting an ARM.
• Zhao shares two scenarios where an ARM is a smart financial move.

Adjustable-rate mortgages, or ARMs, have a bit of a reputation.

After all, most subprime mortgages were ARMs during the 2008 housing market crash. Many Americans with low credit scores bought homes in the early 2000s with ARMs under easy lending conditions in a low-rate environment. But then interest rates rose, making monthly mortgage payments suddenly unaffordable and costing many their houses.