Fixed-Rate and Adjustable-Rate Mortgages
General information only. This page is not a loan offer, application, approval, or personalized financial advice. Rates, costs, eligibility, and program rules depend on the provider, date, borrower, property, and loan terms.
Fixed-rate mortgage
With a fixed-rate mortgage, the interest rate does not change during the loan term. Taxes, insurance, or other parts of the total monthly payment can still change.
Review the term, monthly principal-and-interest payment, APR, points, fees, and prepayment provisions in the written offer.
Adjustable-rate mortgage
An adjustable-rate mortgage can change after an initial period. The later rate is generally based on an index plus a lender-set margin, subject to the loan's adjustment caps.
Before choosing an ARM, review when adjustments begin, how often they can occur, the index, margin, initial and lifetime caps, and the highest payment permitted by the loan terms.
Primary sources
CFPB fixed-rate versus ARM overview ↗