Fixed vs Adjustable-Rate Mortgages

Choosing between a fixed-rate mortgage and an adjustable-rate mortgage (ARM) is one of the most important decisions you'll make as a borrower. Each has its pros and cons, and the right choice depends on your goals, risk tolerance, and how long you plan to stay in the home.

A fixed-rate mortgage offers long-term stability. Your interest rate and monthly principal and interest payments stay the same for the life of the loan — typically 15 or 30 years. This is a great option for those who plan to stay put or want predictable payments.

On the other hand, an ARM starts with a lower interest rate for an initial period (such as 5, 7, or 10 years), followed by periodic rate adjustments based on market conditions. ARMs can be a smart choice if you plan to move or refinance before the rate resets, but they come with the risk of future payment increases.

The key is to compare both options side-by-side and consider your future plans. We’re here to help you weigh the benefits and choose the loan that fits your life.