03/20/2025
A fixed-rate mortgage has an interest rate that stays the same throughout the life of the loan, meaning your monthly payments remain consistent, making it easier to budget. In contrast, an adjustable-rate mortgage (ARM) has an interest rate that can change after an initial fixed period—usually lower at first—then adjusting periodically based on market conditions. While ARMs may offer lower initial payments, they carry the risk of future increases. Choosing between the two depends on your financial situation, how long you plan to stay in the home, and your comfort level with potential rate changes.
