Adjustable-Rate Mortgage vs. Fixed-Rate Mortgage: Which Works Best for You?

When choosing a mortgage, homebuyers must consider adjustable-rate mortgages (ARMs) and fixed-rate mortgages, each with distinct benefits and risks. ARMs offer lower initial rates but can lead to higher payments as rates adjust based on market conditions, making them suitable for short-term ownership. Fixed-rate mortgages provide stability with consistent payments but typically have higher initial rates. Both options require careful consideration of financial situations and risk tolerance, and refinancing may be an option if circumstances change.