Is a fixed-rate or adjustable-rate mortgage better?
There are distinct advantages associated with each of these types of programs. It’s not necessarily a question of which loan is better, but which is better for you and your needs. With a fixed-rate mortgage, you have the security of knowing that your interest rate and payment will not change during the life of the loan. The main advantage of an ARM is that it typically offers a lower initial interest rate than a fixed-rate loan. Then, after a specific period of time, the interest rate on an ARM will begin adjusting – either up or down – on a regular basis (usually once or twice a year).
