Fixed vs Adjustable Rate Mortgages

A fixed-rate mortgage keeps the interest rate the same for the life of the loan, which can make principal and interest payments more predictable over time.

An adjustable-rate mortgage typically starts with an introductory rate that can change later based on an index and margin, within defined caps. The structure may suit shorter ownership horizons for some borrowers—but it introduces payment variability.

The right choice depends on timeline, risk tolerance, and cash-flow priorities. Compare scenarios side by side rather than choosing based on the starting rate alone.