Mortgage Basics

Fixed vs Adjustable Rate Mortgages

Which structure fits your timeline and risk tolerance?

5 min readUpdated 2026Mortgage Basics

Fixed

Rate and payment (principal + interest) don't change for the life of the loan.

ARM

A hybrid ARM (e.g., 5/6, 7/6, 10/6) is fixed for an initial period, then adjusts based on an index plus margin, subject to caps.

Choosing

ARMs often make sense for buyers with a defined shorter-term horizon; fixed rates offer certainty for the long haul.

Key takeaways

  • Fixed = certainty; ARM = lower initial cost with future risk.

Frequently asked questions

Related articles

Get Started

Ready to make your move?

Get pre-approved in minutes or ask our AI mortgage assistant anything — no pressure, no obligation.