Fixed vs. Adjustable-Rate Mortgages: Which One’s Right for You?

Understanding Mortgage Types

Mortgages come in many shapes, but two common types are fixed-rate and adjustable-rate (ARM). A fixed-rate mortgage keeps your interest rate the same for the life of the loan, providing predictability. An ARM, on the other hand, starts with a lower rate that can change over time based on market trends.

Which One Is Better?

It depends on your goals. Fixed rates are great for long-term stability—perfect if you’re planning to stay in your home for many years. ARMs can save you money early on, especially if you plan to move or refinance in a few years.

What Should You Consider?

Think about your timeline, risk tolerance, and budget flexibility. If you’re not sure, speaking with a mortgage expert can help you weigh your options.