Fixed vs ARM Calculator
Compare Fixed Rate and Adjustable Rate Mortgages to find the best option for your situation.
Fixed Rate vs ARM Comparison
Analyze different scenarios to see which mortgage type saves you more
Understanding Fixed vs ARM Mortgages
Fixed Rate Mortgage
A fixed-rate mortgage maintains the same interest rate and monthly payment throughout the entire loan term. This provides stability and predictability, making budgeting easier. Best for those who plan to stay long-term or when rates are historically low.
Adjustable Rate Mortgage (ARM)
An ARM starts with a lower fixed rate for an initial period (3, 5, 7, or 10 years), then adjusts periodically based on market conditions. The initial lower rate can save money if you sell or refinance before adjustments begin.
When to Choose Fixed
- Planning to stay in home long-term
- Interest rates are historically low
- You value payment stability
- You're on a tight budget
- Rates expected to rise
When to Choose ARM
- Plan to sell before rate adjusts
- Expect income to increase
- Rates expected to decrease
- Need lower initial payment
- Plan to refinance before adjustment