 TITLE: What Type of Mortgage Loan Is Best? CONTENT: Should I Get a Fixed-Rate Loan or Adjustable-Rate Mortgage?\n-----------------------------------------------------------\nMortgage interest rates come in two flavors: fixed-rate and adjustable-rate. Fixed-rate mortgages have one interest rate and payment amount for the entire life of the loan.\nAdjustable-rate mortgages (ARMs), on the other hand, have an introductory period in which the interest rate remains the same and is often lower than a fixed-rate annual percentage rate (APR). But after a predetermined time period, it becomes variable. For example, with a 5\/1 ARM, the interest rate would be fixed for the first five years, then adjust each year after. The rate adjusts according to market conditions, so it could go up or down. There are caps on how high it can go, but it can make your monthly payment unpredictable.\nHere's an easy way to figure out which type of interest rate is best for you. If you're going to stay in your home long term, a fixed-rate mortgage is usually better since it provides predictability for decades. However, if you plan to stay in the home for only a few years, an ARM could save you money if you move out before the adjustment period hits, since the initial rate is usually lower than a typical fixed-rate mortgage. END