Which is the better mortgage option for you: fixed or adjustable?
There are lots of ways to finance a home in today's improving economy. For all mortgage applicants, though, it will eventually be time to decide whether to use a “fixed rate" or "adjustable-rate" mortgage. Each has its merits and drawbacks, and with a loan representative guiding you through the process, you'll be in position to decide which loan type is best for you.
The low initial cost of adjustable-rate mortgages, or ARMs, can be tempting to homebuyers, yet they carry a degree of uncertainty. Fixed-rate mortgages offer rate and payment security, but they can be more expensive.
Here are some pros and cons of adjustable-rate and fixed-rate mortgages.