ARM or FRM?

When refinancing your mortgage you will have to decide whether to go for a fixed interest rate, a.k.a. a Fixed Rate Mortgage, or to go with an Adjustable Rate Mortgage (ARM).

Adjustable rates usually start out lower than fixed rates. If, however, you plan on being in your home for a long term, you might want to consider the fixed rate loan.

While it might initially start out at a higher rate, it does leave you with the stability of knowing how much your monthly payments will always be for the next 15, 20, 25 years. As well, while it might initially be a bit higher than the ARM rates, eventually the ARM rates might easily surpass the fixed rates, and render your gain a wash.

Check out both, and don't get locked in to one choice until you have evaluated both.