Fixed-Rate Mortgage
You can determine exactly how much you’re going to pay each month for the next 30 years. As you earn more money over the years the payments become a lower percentage of your debt. However, you will pay more for this peace of mind compared to an ARM.
Adjustable-Rate Mortgage
The rates are lower than a fixed rate mortgage so you can afford more, but this caqn work against you as it has for thousands of Americans that are seeing their monthly payments go up 50% because of rate hikes.
While the ARMs are sexier they can really cause some serious worry because of the volatility. I would not recommend getting an ARM loan except a few instances and those are rare.