Fixed-rate vs ARM mortgage—what should you choose? Compare benefits, risks, and best situations for each mortgage type in the USA in 2026.
Choosing the right mortgage can save you money and stress. The biggest decision is often between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).
Fixed-Rate Mortgage
Fixed-rate means:
✅ interest rate stays the same
✅ monthly payment stays stable
Best for:
- long-term homeowners
- buyers who want stable payment
ARM Mortgage
ARM means:
✅ lower starting rate (often)
❌ rate can increase later
Best for:
- short-term homeowners
- buyers planning to sell soon
Comparison Table
| Feature | Fixed Rate | ARM |
|---|---|---|
| Payment Stability | High | Low–Medium |
| Starting Rate | Medium | Often lower |
| Risk | Low | Higher |
FAQs
1) Is ARM risky?
It can be if rates rise and you stay long-term.
2) Which is better for first-time buyers?
Fixed-rate is safer for predictable budgeting.
✅ Disclaimer: Mortgage rules and rates vary. Verify with lenders before choosing.
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