Hybrid ARM
These are similar to Adjustable Rate Mortgages but have an introductory fixed rate period in a variety of lengths including a 1 year, 3 year, 5 year, 7 year and 10 year options. After the introductory period expires the interest rates can vary as outlined in the section on Adjustable Rate Mortgages.
PRO: The rates are typically lower than fixed rate loans, yet there is less variability than a true adjustable rate mortgage. If you plan to be in a home for just a few years, this will help keep your payments lower.
CON: After the introductory period expires, variable interest rates result in variable payments. If you refinance, you may end up with a higher mortgage rate than you would have had if you had gone with a fixed rate loan from the beginning.