Fixed-rate mortgages
A fixed-rate mortgage keeps the same interest rate for the life of the loan (unless you refinance). The most common terms are 30 years and 15 years.
- 30-year fixed: lower monthly payment, more interest paid over time.
- 15-year fixed: higher monthly payment, less interest paid over time, builds equity quicker.
Adjustable-rate mortgages (ARMs)
An ARM typically starts with a fixed rate for a set period—commonly 5, 7, or 10 years—then adjusts periodically based on the loan’s index and margin. Payments can go up or down after the fixed period depending on market conditions and loan terms.
How to choose (a simple framework)
- Choose a fixed rate if you want predictable payments and plan to stay long-term.
- Consider an ARM if you expect to move or refinance before the fixed period ends, or if you want a lower starting payment with a plan for possible adjustments.
Down payment reality check
You may not need as much down as you think. Many buyers use low-down-payment conventional, FHA, VA, or USDA options depending on eligibility.
Next step
We will model side-by-side payments for fixed vs ARM using today’s pricing for your scenario—so you can decide based on numbers, not jargon.
Contact us to see what you qualify for
All loans are subject to credit and underwriting approval. Program guidelines, rates, and limits change. This page is for general education and is not a commitment to lend. Ask a licensed loan officer for details that apply to you.