ARM home loans are great loans for borrowers that are using them the correct way and are aware of the potential dangers they hold. However most people take these adjustable mortgage loans based entirely on getting a lower rate and payment and have little understanding of how they work or how to avoid the potential dangers associated with ARM home loans. Many home owners do not realize they have made mistakes until it is to late and they are unable to refinance their adjustable rate mortgage and are stuck struggling to make the higher payments.