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Which is better – an ARM (adjustable-rate mortgage) or a fixed rate mortgage?

April 26, 2017adjustable-rate arm fixed rate mortgage mortgage

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Which is better – an ARM (adjustable-rate mortgage) or a fixed rate mortgage?

1 Answer

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The answer to this question is dependent on your particular circumstances. An ARM might be the perfect fit for you if you plan on selling your home in the near future. ARMs usually have lower interest rates and monthly payments than fixed rate mortgages, but can fluctuate monthly or yearly, depending on the type of loan you have. Someone who plans on selling their home before the adjustable rate exceeds the fixed rate can benefit from this type of loan.