When you're shopping for a home loan, one of your first decisions will be choosing between a fixed-rate mortgage (FRM) or an adjustable-rate mortgage (ARM).

Fixed-rate loans keep the same interest rate for the life of the loan—meaning your monthly principal and interest payments stay the same. It’s predictable and stable, great for long-term homeowners.

Adjustable-rate loans usually start with a lower interest rate for the first few years (commonly 5, 7, or 10 years), then adjust annually based on market rates. That means lower payments up front, but possible increases later.

👉 Choose fixed if you plan to stay in your home long-term.
👉 Choose adjustable if you’re buying a starter home or plan to sell or refinance before the rate adjusts.