What is the difference between fixed-rate and adjustable-rate mortgages?
What is the difference between fixed-rate and adjustable-rate mortgages?
Fixed-rate mortgages have consistent interest rates and monthly payments throughout the loan term, offering stability. Adjustable-rate mortgages (ARMs) start with a lower fixed rate for an initial period, then adjust periodically based on market conditions, which can lead to higher payments later. Fixed-rate loans are ideal for long-term stability, while ARMs might be better for short-term homeowners or those expecting interest rates to remain low.
