Fixed vs. adjustable-rate mortgage (ARM): how to choose, per the CFPB
As of October 2026, fixed vs. adjustable-rate mortgage: with a fixed-rate mortgage the rate never changes; with an ARM it can rise or fall after the intro period, per the CFPB.
Updated (ET)
As of October 2026, fixed vs. adjustable-rate mortgage: with a fixed-rate mortgage the rate never changes; with an ARM it can rise or fall after the intro period, per the CFPB. There is no ranking here: compare offers using the checklist below.
The CFPB warns not to count on selling or refinancing before an ARM adjusts. Ask each lender for a Loan Estimate for both options and compare them side by side.
| Question | Why it matters | Source |
|---|---|---|
| How high can the rate and payment go at each adjustment? | Sets your worst-case payment | CFPB |
| How often does the rate adjust? | Determines how fast payments can change | CFPB |
| How soon can the payment rise? | Length of the intro period | CFPB |
| Is there a lifetime rate cap? | Limits total increase | CFPB |
| Can you afford the maximum payment on today’s income? | The CFPB’s main affordability test | CFPB |
FAQ
Is a fixed or adjustable mortgage better?
Is a fixed or adjustable mortgage better?
It depends on how long you keep the loan and how much payment risk you can take. (Source)
What is an index and margin?
An ARM rate equals a market index plus a margin set by the lender, subject to caps. (Source)
Do ARMs start lower?
Many start below fixed-rate loans, then adjust. (Source)
Should I plan to refinance before it adjusts?
The CFPB says not to assume you can. (Source)
Where can I see today’s rates?
See our mortgage rates page.