Ask Bob Buying a Home What's the difference between a fixed-rate and adjustable-rate mortgage?
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What's the difference between a fixed-rate and adjustable-rate mortgage?

A fixed-rate mortgage locks in your interest rate for the entire loan term, typically 15 or 30 years, giving you predictable monthly payments. An adjustable-rate mortgage (ARM) starts with a lower rate that adjusts periodically based on market conditions. ARMs can save money short-term but carry the risk of higher payments later. Fixed-rate loans are the most popular choice among South Jersey homebuyers.

Why It Matters

Choosing between fixed and adjustable rates affects your monthly payment, long-term costs, and financial stability. The right choice depends on how long you plan to stay in the home.

Related Questions

What should I look for during an open house? How much should I save for a down payment? What are closing costs and how much are they? What loan options are available for first-time buyers? What questions should I ask my real estate agent when buying?

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