Do I need an adjustable rate or a fixed rate mortgage loan?

Adjustable-rate mortgage loans are linked to an index, Prime, and therefore the rate can change over time based upon fluctuations of the index.  If rates are low and you do not plan on staying in your home for a long time, an adjustable rate mortgage could be advantageous.  Consider factors that could affect your decision, such as how a higher monthly payment would impact your budget if the rate were to increase and the length of time you plan to stay in your home.

Fixed-rate mortgage loans have interest rates that don’t change.  Hence, your monthly mortgage payment will remain the same during the life of the loan.