Fixed vs. Adjustable-Rate Mortgages (ARM)
What Is a Fixed-Rate Mortgage?
A fixed-rate mortgage keeps the same interest rate for the entire loan term. Your monthly principal and interest payments stay consistent, making budgeting predictable.
What Is an Adjustable-Rate Mortgage (ARM)?
An ARM starts with a lower introductory rate that adjusts periodically based on market conditions. Payments can increase or decrease after the fixed period ends.
Benefits of Fixed-Rate Mortgages
Fixed-rate loans offer long-term stability, predictable payments, and protection from rising interest rates, making them a strong choice for buyers planning to stay in their home.
Benefits of Adjustable-Rate Mortgages
ARMs offer lower initial rates, which can reduce early payments. They may benefit buyers who plan to move or refinance before the adjustment period begins.
Compare Fixed and ARM Options for Your Goals
Review the differences between fixed and adjustable rates to choose the mortgage that fits your plans.
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