Mortgages & Financing

Fixed-rate vs adjustable-rate mortgage: which fits me?

By Steve Lockhart

The short answer

A fixed-rate mortgage keeps the same interest rate and the same monthly payment for the life of the loan, usually 30 or 15 years. That predictability is why most Las Vegas buyers choose it.

Full answer

A fixed-rate mortgage keeps the same interest rate and the same monthly payment for the life of the loan, usually 30 or 15 years. That predictability is why most Las Vegas buyers choose it. An adjustable-rate mortgage, or ARM, starts with a lower rate that holds for an initial window, often five, seven, or ten years, then adjusts on a set schedule. The lower start can stretch your purchasing power, but after the window the rate follows the market and the payment can rise. The honest decision starts with a timeline: how many years do you expect to live in this home? If you will sell or refinance before the first adjustment, the ARM can be a disciplined choice. If you want the payment locked for decades, a fixed loan is usually the winner. We run both with your numbers and your plan, not with what sounds clever in a brochure.

Go a little deeper

Frequently asked

Questions people often follow up on

What happens when the ARM fixed period ends?

The rate resets under the caps written in your loan documents, and your lender must show you the highest possible payment before you sign. If the worst case still fits your budget, an ARM can work. If the unknown would cost you sleep, a fixed loan removes the variable entirely.

Can I refinance before the ARM adjusts?

If your equity, credit, and the market cooperate near the end of the fixed window, refinancing is the usual way to avoid the adjustment. We track that date from the first year so you are never caught without options when the window closes.

Is an ARM riskier than a fixed rate?

Different, not automatically worse. The lower starting rate is a real benefit, and the risk sits at the adjustment windows. Lenders cap how much and how fast the rate can move. If the capped worst case is still comfortable, an ARM can be smart. If the uncertainty hurts your planning, fixed wins.

The Lockhart Method

Your Home | My Strategy | Proven Results

My strategy: answer the timeline question first, how long you honestly expect to live in that home, and choose after. A short horizon can make the ARM the stronger tool; a long one needs the fixed foundation.

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