Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Which is a better choice, a Fixed Loan or an Adjustable Rate Mortgage (ARM)?

April 26, 2017adjustable rate mortgage arm fixed loan

0

Posted

Which is a better choice, a Fixed Loan or an Adjustable Rate Mortgage (ARM)?

1 Answer

0

Posted

This depends mainly on how long you intend to keep your mortgage. Rates on ARM’s are often lower than those of Fixed Rate Mortgages at the outset, but they carry the risk of rates rising over time. Generally, If you know you will only be in the property for a few years, an ARM would be recommended. If you are unsure about how long you will have the loan or be in the property, a Fixed Rate Mortgage is most likely the best option.