text: arm vs. fixed rate?   depends. fixed rates often come with a prepayment penalty. would you ever reduce  your mtg by a large sum. but your interest rate will never change no matter how high or low they go unless you refi. but you will still have to pay the penalty if one is with the loan arm will have a ceiling and a floor that it cannot exceed there is a lot of uncertainty with interest rates right now,they are more user friendly if you need to refi are can sometimes be adjusted to lower payment, the best one would be whay will suit you