Riskier home loans being taken out

(CNN)– There are more U.S. home-buyers who are taking a financial gamble before signing on the dotted line.

Economists say there’s been an increase in Americans taking out “adjustable-rate mortgages.”

Unlike fixed-rate mortgages, “arm” loans can provide people with short-term breathing space from increased borrowing costs.

But the trade off is after a set period of time usually a few years,  an “arm” rate will reset with the current market.

That means if rates rise, a homeowner’s monthly payment could potentially surge upward.