Fixed-Rate or Adjustable-Rate - What Makes Sense For You?

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Fixed-Rate vs. Adjustable-Rate Mortgages: What's Right For You?

When it comes to choosing a mortgage, one of the decisions you'll face is whether to go with a fixed-rate mortgage or an adjustable-rate mortgage (ARM). Each has its own set of advantages and trade-offs, and the right choice depends on your financial goals, lifestyle, and how long you plan to stay in your home.

🏠 Fixed-Rate Mortgage

A fixed-rate mortgage locks in your interest rate for the entire life of the loan—whether it's 15, 20, or 30 years. That means your monthly principal and interest payments will never change (though property taxes and insurance may).

Pros:
  • Predictable payments for easier budgeting
  • Protection against rising interest rates
  • Ideal for long-term homeowners
Cons:
  • Initial interest rates are typically higher than ARMs
  • Less flexibility if you only plan to stay in the home short-term

🔄 Adjustable-Rate Mortgage (ARM)

An adjustable-rate mortgage starts with a lower fixed interest rate for an initial period (usually 3, 5,  or even 10 years), then adjusts periodically based on market conditions.

Pros:

  • Lower initial interest rate and monthly payments
  • Potential savings if you sell or refinance before the rate adjusts
  • Could be a smart option for short-term homeowners or future movers

Cons:

  • Rates can increase after the fixed period, which may raise your payments
  • Less predictability and potential for payment shock

📝 Which One Is Right for You?

If you’re planning to stay in your home long-term and value payment stability, a fixed-rate mortgage might be your best bet. If you're confident you'll move or refinance before the adjustment period kicks in, an ARM could help you save in the early years.

Still not sure which one fits your goals?

📩 Let’s connect—I’d be happy to help you weigh your options and make an informed decision.

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