What is the primary purpose of providing a consumer handbook on adjustable-rate mortgages?

The primary purpose of providing a consumer handbook on adjustable-rate mortgages (ARMs) is to help borrowers understand the risks and features of these types of loans. ARMs can have fluctuating interest rates that may lead to unpredictable monthly payments, and it is crucial for borrowers to fully grasp how these changes can impact their financial situation over time. The handbook serves as an informative resource that outlines the mechanics of ARMs, including how interest rates are adjusted, the frequency of adjustments, and any potential financial implications. By educating consumers on these key aspects, the handbook empowers them to make informed decisions about whether an ARM is suitable for their financial circumstances.

While it may touch upon some benefits of ARMs, promoting fixed-rate mortgages, or offering loan incentives, the essence of the handbook centers around ensuring that borrowers are fully aware of the complexities and risks involved with ARMs, enabling them to approach their lending decisions with clarity and confidence.