Fixed vs Adjustable Rate Mortgage — Which Should You Choose?
Side-by-side comparison of 30-year fixed, 15-year fixed, and 5/1 ARM — how each is priced, where the risk lies on ARMs, and how to decide based on your planned hold period rather than guessing on rates.
What you'll learn
- How the 10-year Treasury yield drives 30-year fixed mortgage rates
- How ARMs are structured: initial fixed period, index (SOFR), margin, and caps (2/2/5)
- Why 15-year fixed rates are 0.5–0.75% lower than 30-year fixed
- The break-even hold period where an ARM saves vs a fixed rate