What’s the Difference Between a Fixed-Rate and Adjustable-Rate Mortgage

A Fixed-Rate Mortgage Keeps Your Payments Predictable

With a fixed-rate mortgage, your interest rate—and your monthly payment—stay the same for the life of the loan, whether that’s 15, 20, or 30 years. This is ideal if:

  • You plan to stay in the home long-term
  • You want stability and predictability
  • You’re concerned about rising interest rates in the future

It’s the “set-it-and-forget-it” option that gives many buyers peace of mind.

An Adjustable-Rate Mortgage (ARM) Starts Lower—Then Changes

An ARM starts off with a lower interest rate for a set period—usually 5, 7, or 10 years. After that, your rate can adjust annually based on market conditions. This can be a great choice if:

  • You plan to move or refinance before the adjustment period
  • You want lower initial monthly payments
  • You’re comfortable with a little risk and flexibility

Just be aware: your rate could go up, which would increase your monthly payment.

3. The Right Choice Depends on Your Timeline and Risk Tolerance

If you’re in it for the long haul, fixed-rate gives you certainty. But if you’re buying a starter home or planning a short stay, an ARM might offer upfront savings. The key is knowing your goals and how much rate movement you’re comfortable with.

Need Help Choosing the Right Mortgage for Your Goals?

📘 Download our free “First-Time Buyer Game Plan” eBook — includes a full breakdown of fixed vs. ARM options
💬 Chat live now to ask questions about today’s rates and how they affect your payment
📞 Schedule a call with a Stairway Mortgage advisor to compare both options and build your custom planAt Stairway Mortgage, we don’t believe in one-size-fits-all loans—
we believe in helping you pick the right fit for your future.

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