Fixed vs. adjustable rate mortgages
If you’re shopping for a mortgage, you may be comparing fixed- and adjustable-rate loans. With a fixed-rate mortgage your interest rate remains the same for the life of the loan. With an adjustable-rate mortgage, your loan will start with a fixed rate for a certain period—usually three, five or seven years. Afterward, the interest rate may fluctuate depending on market conditions. To help you decide which option is right for you, we’ll review details of both options, including pros and cons for you to consider.