Mortgage Options: Fixed-Rate vs. Adjustable-Rate
Mortgage Options: Fixed-Rate vs. Adjustable-Rate By Brenda Ferrandes, Realtor When you're ready to purchase a home, one of the most important financial decisions you'll face is choosing the right mortgage. Two of the most common types are fixed-rate and adjustable-rate mortgages (ARMs). Understanding the differences between these options can help you make an informed choice aligned with your financial goals and lifestyle. Fixed-Rate Mortgages A fixed-rate mortgage offers consistency and predictability. The interest rate remains unchanged throughout the entire loan term, which typically ranges from 15 to 30 years. This means your monthly principal and interest payments stay the same year after year. Advantages of Fixed-Rate Mortgages: Predictability: Easy to budget, as payments don’t change. Stability: Ideal for homeowners planning to stay in their property long term. Protection from Rate Fluctuations: No concern about rising interest rates impacting your monthly pay...