Adjustable vs fixed rate mortgages
Mortgage interest rates, as well as all loan interest rates, come as either adjustable or fixed rates. A fixed rate mortgage has an interest rate that stays the same through the life of the loan. An adjustable rate mortgage has an interest rate that is subject to change at regular intervals, ranging from just once during the life of the loan, to once a year.
If current interest rates are low, a fixed rate may be a good idea to lock it in for the life of the loan. However, adjustable rate loans are usually given a lower starting interest rate than a fixed rate loan, so if you plan to move before the end of the low interest rate period, then an adjustable rate loan can be a better option.