 TITLE: What to Know About How Mortgage Interest Works CONTENT: Difference Between a Fixed-Rate and an Adjustable-Rate Mortgage?\n----------------------------------------------------------------\nBoth fixed-rate and adjustable-rate mortgages have their pros and cons, but understanding how they differ can help you determine the right fit for your needs.\nWith a fixed-rate mortgage, your interest rate will never change for the life of the loan. It's a great option if you prefer certainty and plan to live in your home for a long time.\nIf you choose an adjustable-rate mortgage, your interest rate will start off lower than a fixed-rate mortgage, and it will remain the same for a set period—say three, five, seven or even 10 years. After the initial fixed period is over, though, your rate can go up or down each year, depending on the current market mortgage rates.\nThere are some guardrails in place to keep your interest rate from going up too much. But it still puts most of the risk on the borrower instead of the lender.\nAdjustable-rate mortgages don't provide as much certainty, but they may be worth considering if you're not planning on staying in your home for very long. For example, if you're thinking of living in a particular home for three to five years, an adjustable-rate mortgage with a five-year fixed period may be a good fit. END