Should I Get a Fixed-Rate Mortgage or an Adjustable-Rate-Mortgage?

Q: Should I get a fixed-rate mortgage or an adjustable-rate mortgage?

A: When deciding between a fixed-rate mortgage (FRM) and an adjustable-rate mortgage (ARM), it’s important to understand how each works—especially why so many homeowners choose the consistency and peace of mind that come with an FRM.

What is a fixed-rate mortgage (FRM)?

A fixed-rate mortgage locks in your interest rate for the entire life of the loan, regardless of market fluctuations. That means your monthly principal and interest payments remain the same year after year, whether you choose a 15-, 20-, or 30-year term.

This stability makes FRMs especially appealing to homebuyers who value predictability and want long-term financial confidence—particularly those planning to stay in their home for many years.

Why choose a fixed-rate mortgage?

• Long-term stability: Your interest rate never changes, no matter what happens in the market.

• Predictable payments: Budgeting is simple when you know exactly what you’ll owe each month.

• Built-in protection: You’re safeguarded from future interest rate hikes, giving you greater peace of mind.

An FRM is ideal for borrowers who want certainty and control over their finances from day one. It’s the go-to option for homeowners seeking a reliable, stress-free mortgage experience.

What is an adjustable-rate mortgage (ARM)?

An adjustable-rate mortgage starts with a lower initial interest rate that adjusts over time based on market conditions. This means your monthly payments can increase or decrease, depending on interest rate trends.

While ARMs may offer initial savings, they come with variability that makes long-term planning more complex.

How to decide which mortgage is right for you

Ask yourself:

• Do I want to lock in today’s interest rate and avoid future increases?

• Am I planning to stay in my home for several years or more?

• Do I value financial stability and predictable monthly payments?

If your answer is yes, a fixed-rate mortgage is likely the best choice. It offers unmatched peace of mind, clarity, and long-term value—no surprises, just steady progress toward homeownership. And when you’re ready to take the next step, Texas DPS Credit Union is here to help with expert guidance and mortgage solutions tailored to your needs.