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

Choosing the right mortgage type can impact your long-term financial stability. Understanding the differences between fixed-rate mortgages (FRMs) and adjustable-rate mortgages (ARMs) is key to making the best decision.

Fixed-Rate Mortgage (FRM)

• Consistent interest rate for the life of the loan

• Stable, predictable monthly payments

• Ideal for long-term homeownership

• Typically higher initial interest rates than ARMs

  
  

Adjustable-Rate Mortgage (ARM)

• Lower initial interest rate for a fixed period (e.g., 5, 7, or 10 years)

• Rate adjusts periodically after the initial period

• Potential for lower payments if rates decrease

• Payments may increase if interest rates rise

  
  

Which One Should You Choose?

• Staying long-term? A fixed-rate mortgage provides stability.

• Selling or refinancing soon? An ARM could offer lower upfront costs.

• Prefer predictability? A fixed-rate loan locks in your payment.

• Comfortable with potential changes? An ARM may provide short-term savings.

  
  

If you’re unsure which option fits your financial goals, let’s discuss your best mortgage strategy today.