As the index and the margin forbid any alterations in the interest rate, the customer is perfectly convinced. This also opens various opportunities to the customer to sponge money. Adding to this, this money is given at rates lesser than the existing market rates, which is an advantage to the customer. This strategy permits the customer to enjoy financial support and thereby maintain his payments within limits. So customer finds ARM as reasonable and within his budget lines. ARM is designed specially to facilitate more potential customers.

The ARM entails interest rate adjusted periodically as per the index. This is executed to ascertain continuous and stable margin to the lender. Subsequently, as payments fluctuate time and again with the interest rates, the customer or the borrower is benefited. If the rate of interest falls down or freezes for a long period of time, the customer is benefited. This facility increases the number of potential customers. Many countries follow adjustable rate mortgages as custom, basically due to its advantages. In fact it has full potential in bringing advantage to the customer. It is an advantage to the lender, if the rates of interest soar. In many countries adjustable rate mortgages are commonly referred as "Mortgages" as they opt only for this mortgage.