08/18/2026
A buyer last month locked a 30-year fixed at 7.1%. Her neighbor chose a 5/1 ARM at 5.8%. Which choice pays off comes down to how long each of them plans to stay.
This is one of the most common questions we hear at a first consultation, especially with Miami rates moving as much as they have.
Here's the honest breakdown.
Fixed-rate: the same payment every month for the life of the loan. Higher starting rate, but the payment stays predictable and carries no rate risk. It fits buyers who plan to stay 7+ years or simply want payment certainty.
Adjustable-rate (ARM): a lower rate upfront that resets after an intro period. That reset can work in your favor if you sell or refinance before it hits. It fits buyers with a defined shorter-term horizon or those expecting rates to drop before the adjustment.
Neither one is objectively better. The right answer depends on your timeline, not on which number looks lower today.
Thinking about a Miami purchase and unsure which structure fits your plans? Let's talk it through. π‘