Which is better: Fixed or adjustable-rate mortgage?

Which is better: fixed- or adjustable-rate mortgage? There's no single right answer to this question. Factors such as loan duration, the index used by the lender, the number and timing of rate adjustments, and your assumption about the increase/decrease of future interest rates all have an impact.

Mortgage Alternatives and Assumptions
Fixed-Rate Loan
(0% to 40%)
Adjustable-Rate Loan
(0% to 40%)
(Initial) annual interest rate
Number of years
Index Rate Detail
help
help
help
Adjustable Rate Detail
Comparison Assumptions
help
help

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.