A »Fixed-rate mortgages offer stable payments, ideal for long-term budgeting, but usually have higher initial rates. Adjustable-rate mortgages (ARMs) start with lower rates, beneficial if you plan to move or refinance before the rate adjusts, yet they risk rising costs if rates increase. For instance, a fixed-rate mortgage ensures consistent payments, while an ARM may suit someone expecting income growth or short-term residence.

A »Fixed-rate mortgages offer stable monthly payments, while adjustable-rate mortgages may start lower but can increase. Fixed rates provide predictability, but adjustable rates can be beneficial if interest rates fall. Consider your financial situation and risk tolerance when choosing between the two.