Fixed-Rate vs. Adjustable-Rate

Fixed-Rate vs. Adjustable-Rate

Fixed-Rate


A fixed-rate home loan is a loan with an interest rate that stays constant. The loan payment remains the same throughout the life of your loan. It can be ideal for buyers who plan to stay in their home for a very long time or feel more comfortable in knowing the rate and payment won’t change.

Adjustable-Rate


An adjustable-rate home loan (ARM) is a loan with an interest rate that changes. Sometimes, this loan features a lower interest rate with lower monthly payments than a fixed-rate mortgage. It can be ideal for buyers who are not planning to stay in their home for a long period of time.

Some factors to consider:

  • Monthly payments can change depending upon your loan term – they could go up or they can go down depending on the way your loan is structured.

  • Consider working out a “worst-case” scenario with your Evergreen Home Loan professional to determine whether this option is right for you.