Should I choose a fixed-rate or adjustable-rate mortgage?

The core trade-off is certainty versus a lower starting payment. With a fixed rate you know your principal and interest payment for the life of the loan and you are insulated from rate moves, which is why most long-term owners prefer it.

An adjustable rate, often called an ARM, starts with a lower rate for the first few years, then adjusts on a schedule. If you expect to own for only a few years, the savings in that initial period can be meaningful; if you plan to stay a decade, the risk of later adjustments grows.

Your expected time in the home, your comfort with a changing payment, and today's spread between fixed and adjustable rates all feed the decision, along with the specific caps on how much an ARM can change. It is a numbers question with a personality layer, not a one-size answer.

Kathleen, a Realtor® with eXp Realty, works with local lenders who can model both loans side by side with your real numbers, so you see the monthly difference and the total cost over the time you plan to own.