What’s the Difference Between a Fixed-Rate and an Adjustable-Rate Mortgage?

In my experience, the biggest difference lies in predictability. A fixed-rate mortgage keeps the same interest rate for the life of the loan, which means your monthly payments remain consistent. It’s ideal for buyers who plan to stay long-term or value stability.

An adjustable-rate mortgage (ARM) starts with a lower initial rate that can change after a set period based on market conditions. While this can be appealing when rates are high, it carries risk if rates increase later. I advise clients to choose based on their long-term goals and comfort with risk—fixed-rate loans offer peace of mind, while ARMs can benefit those planning to sell or refinance within a few years.