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Fixed-Rate / Adjustable-Rate Mortgages (ARM)

Fixed-Rate VS Adjustable-Rate Mortgage

What does this mean? What is the difference? How do I decide?

Woah, woah, slow down! I know you’re curious now.

YES, you can choose between the two. We have made this article to help you break it down.

Fixed-Rate Mortgage

With a fixed-rate mortgage, your interest rate remains the same for the entire life of the loan. Unless you choose to refinance and enter a mortgage with a different rate.

Adjustable-Rate Mortgage

With an Adjustable-Rate Mortgage, commonly referred to as an ARM, rates and monthly payments remain the same for a set period, then change periodically. For example, a 5/1 ARM locks in your rate for the first 5 years, then your rate will fluctuate once per year. Your rate will either increase or decrease depending on rate trends in the U.S.

To help you best decide which is right for you. We broke down a Pros list below, Cons are depending on your situation, please ask your Loan Officer:

Guild Mortgage Yuma

It is normal to have questions, especially about a loan product you may have never heard of! Give us a call and schedule a consultation today!

Pros of Fixed-Rate Mortgages

  • If mortgage rates increase, you keep your lower rate. Because rates are relatively low right now, chances are, your rate will increase later if you choose an ARM. But with a fixed rate, you get to keep your low rate for the entire life of your loan.
  • Predictable payments make it easier to budget. Granted, certain payments that are wrapped up in your mortgage could change over the years, such as private mortgage insurance or property taxes. But your interest rate will stay the same from year to year, which could make it easier for you to plan out your monthly expenses.

Pros of Adjustable-Rate Mortgages

  • Short Term Savings. If you are not planning on owning the home more than a few years, a 3- or 5-year ARM may be the better choice. Ask your loan officer about this option!
Branch Manager

Derek Egeberg

NMLS 180899 State Lic: AZ LO-0915245, TN 236104
PHONE: (928) 246-0422
PHONE: (928) 247-9089
Sales Manager

Bill Craft

NMLS 1621885
State Lic: AZ LO-0942496, CA-DBO01621885, MLO-54015VA
PHONE: (928) 366-1639
PHONE: (928) 247-9089
Senior Loan Officer

Ray Ochoa

NMLS 214114
State Lic: AZ LO-0915882, TN 238287
PHONE: (928) 246-5937
PHONE: (928) 247-9089
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Senior Loan Officer

Rosa Castillo

NMLS 799138
State Lic: LO-0944489
PHONE: (928) 920-2831
PHONE: (928) 247-9089
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