--- title: Which Mortgage is Right for You - Adjustable-Rate, Interest-Only, or Fixed-Rate? description: You've found the home you want and you're ready to buy - but how do you determine what kind of mortgage is best for your budget and lifestyle? image: https://info.carringtonmortgage.com/hubfs/CHL%20Knowledge%20Base/Which%20Mortgage%20Is%20Right%20For%20You%20Article.jpeg --- [Skip to content](https://info.carringtonmortgage.com/information-center/which-mortgage-is-right-for-you-adjustable-rate-interest-only-or-fixed-rate#main-content) ![bell icon](https://info.carringtonmortgage.com/hubfs/raw_assets/public/Templates/2022/svg/Alert-Notifications-Icon.svg) [![Carrington Mortgage Services](https://info.carringtonmortgage.com/hs-fs/hubfs/carrington_logo_final_2col_rgb.png?width=250&height=57&name=carrington_logo_final_2col_rgb.png)](https://www.carringtonmortgage.com) - [About Us](https://www.carringtonmortgage.com/our-mission) - [Careers](https://www.carringtonhc.com/careers) - [Investors](https://www.carringtonhc.com/investors) - [Contact Us](https://www.carringtonmortgage.com/contact-us) [Recent Transfer](https://www.carringtonmortgage.com/new-customers) [Customer Login](https://www.carringtonmortgage.com/login) MAKE HOME WORK Manage My Home arrow-down-anticon/submenu Manage My Mortgage arrow-down-anticon/submenu Learning Center MAKE HOME WORK Manage My Home arrow-down-anticon/submenu - I Am Ready to Start - [Buy a Home](https://www.carringtonmortgage.com/home-loans/buy-a-home/check-existing-customer) - [Refinance My Home](https://www.carringtonmortgage.com/home-loans/refinance-a-home/refinance-step) - What Loan Is Right For Me? - [Purchase Options](https://www.carringtonmortgage.com/home-loans/buy-a-home) - [Refinance Options](https://www.carringtonmortgage.com/home-loans/refinance-a-home) - What is Involved in Getting a Loan? - [The Loan Process](https://www.carringtonmortgage.com/tools/loan-process) - I Want to Calculate... - [Monthly Mortgage Payment](https://www.carringtonmortgage.com/tools/calculators) - [Home Affordability](https://www.carringtonmortgage.com/tools/calculators#affordability) - [Cost to Refinance](https://www.carringtonmortgage.com/tools/calculators#refinance) - [Loan Comparison](https://www.carringtonmortgage.com/tools/calculators#comparison) - Partner With Us - [Home Builders](https://www.carringtonmortgage.com/Partner-with-Us/home-builders) - [Real Estate Agents](https://www.carringtonmortgage.com/Partner-with-Us/real-estate-agents) - I Have Questions - [Need an Expert](https://www.carringtonmortgage.com/find-an-expert) Manage My Mortgage arrow-down-anticon/submenu - I Just Had My Loan Transferred Here - [New to Carrington Onboarding?](https://www.carringtonmortgage.com/new-customers) - How Do I Repay My Loan - [Payment Options](https://www.carringtonmortgage.com/payment-options) - [Payoff Statement](https://www.carringtonmortgage.com/payoff-statements) - What Are Servicing Fees? - [See the Schedule of Fees](https://www.carringtonmortgage.com/schedule-of-fees) - I Need Help With - [Mortgage Assistance](https://www.carringtonmortgage.com/mortgage-assistance) - [Disaster Assistance](https://www.carringtonmortgage.com/disaster-assistance) Learning Center - [About Us](https://www.carringtonmortgage.com/our-mission) - [Careers](https://www.carringtonhc.com/careers) - [Investors](https://www.carringtonhc.com/investors) - [Contact Us](https://www.carringtonmortgage.com/contact-us) --- Recent Transfer --- Customer Login [Home Loans](https://info.carringtonmortgage.com/information-center/tag/home-loans) # Which Mortgage is Right for You - Adjustable-Rate, Interest-Only, or Fixed-Rate? [![Share on Facebook](https://info.carringtonmortgage.com/hs-fs/hubfs/EHO/facebook.png?width=24&name=facebook.png)](http://www.facebook.com/share.php?u=https%3A%2F%2Finfo.carringtonmortgage.com%2Finformation-center%2Fwhich-mortgage-is-right-for-you-adjustable-rate-interest-only-or-fixed-rate%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on LinkedIn](https://info.carringtonmortgage.com/hs-fs/hubfs/EHO/linkedin.png?width=24&name=linkedin.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Finfo.carringtonmortgage.com%2Finformation-center%2Fwhich-mortgage-is-right-for-you-adjustable-rate-interest-only-or-fixed-rate%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on Twitter](https://info.carringtonmortgage.com/hs-fs/hubfs/EHO/twitter.png?width=24&name=twitter.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Finfo.carringtonmortgage.com%2Finformation-center%2Fwhich-mortgage-is-right-for-you-adjustable-rate-interest-only-or-fixed-rate%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Finfo.carringtonmortgage.com%2Finformation-center%2Fwhich-mortgage-is-right-for-you-adjustable-rate-interest-only-or-fixed-rate%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=Which%20Mortgage%20is%20Right%20for%20You%20-%20Adjustable-Rate%2C%20Interest-Only%2C%20or%20Fixed-Rate%3F) [![Share on Pinterest](https://static.hubspot.com/final/img/common/icons/social/pinterest-24x24.png)](http://pinterest.com/pin/create/button/?url=https%3A%2F%2Finfo.carringtonmortgage.com%2Finformation-center%2Fwhich-mortgage-is-right-for-you-adjustable-rate-interest-only-or-fixed-rate%3Futm_medium%3Dsocial%26utm_source%3Dpinterest&media=https%3A%2F%2Fcms.carringtonhomeloans.com%2Fhubfs%2FEHO%2Fpinterest.png) [![Share on Email](https://info.carringtonmortgage.com/hs-fs/hubfs/EHO/email.png?width=24&name=email.png)](mailto:?subject=Check%20out%20https%3A%2F%2Finfo.carringtonmortgage.com%2Finformation-center%2Fwhich-mortgage-is-right-for-you-adjustable-rate-interest-only-or-fixed-rate%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Finfo.carringtonmortgage.com%2Finformation-center%2Fwhich-mortgage-is-right-for-you-adjustable-rate-interest-only-or-fixed-rate%3Futm_medium%3Dsocial%26utm_source%3Demail) ![](https://info.carringtonmortgage.com/hubfs/CHL%20Knowledge%20Base/Which%20Mortgage%20Is%20Right%20For%20You%20Article.jpeg) You've found the home you want and you're ready to buy - but how do you determine what kind of mortgage is best for your budget and lifestyle? It can be tempting to secure a loan with adjustable interest rates and lower initial monthly payments. In some circumstances, an interest-only loan with its lower monthly payments could make sense. A fixed-rate mortgage is usually more expensive to start, but is it best in the long run? There are several questions you should consider before you decide: - Have you thought about how long you plan to stay in your home? - If you move frequently, an ARM or interest-only loan could make sense. - If this is your forever home, you probably want to lock in a long-term interest rate and monthly payment. - What is the current interest rate environment? - If mortgage rates are high, an ARM has an advantage because of the initial lower rate. If rates are falling, you could actually see the rate go down. But if the current rates are low, adjusted rates are likely to increase. - Could you still afford a monthly payment if it increases dramatically? - If interest rates rise rapidly, the monthly payment for an ARM mortgage on a loan of $200,000 could be significantly more than a fixed-rate loan. - An interest-only loan payment will increase after the initial term to cover the addition of principal payments. Bottom line - all three loan types *might* make sense for you in the right circumstance. As with any significant financial transaction, however, be sure that you understand the impact that the mortgage you choose will have on your monthly budget. ## Related Articles [![](https://info.carringtonmortgage.com/hubfs/Newsletter_Lower_rate.jpg)](https://info.carringtonmortgage.com/information-center/interest-rates-are-falling-) [Refinance](https://info.carringtonmortgage.com/information-center/tag/refinance) [Save Money](https://info.carringtonmortgage.com/information-center/tag/save-money) ### [Interest Rates are Falling!](https://info.carringtonmortgage.com/information-center/interest-rates-are-falling-) With property values remaining strong, now may be the time to make the most of your home’s value. At Carrington, we offer financing with competitive rates and flexible... [Read More](https://info.carringtonmortgage.com/information-center/interest-rates-are-falling-) [![](https://info.carringtonmortgage.com/hubfs/shutterstock_1007495371-1.jpg)](https://info.carringtonmortgage.com/information-center/why-homeownership-makes-sense-despite-interest-rates) [Refinance](https://info.carringtonmortgage.com/information-center/tag/refinance) [Purchase](https://info.carringtonmortgage.com/information-center/tag/purchase) [Home Equity](https://info.carringtonmortgage.com/information-center/tag/home-equity) [Buying & Selling](https://info.carringtonmortgage.com/information-center/tag/buying-selling) ### [Why Homeownership Makes Sense Despite Interest Rates](https://info.carringtonmortgage.com/information-center/why-homeownership-makes-sense-despite-interest-rates) The decision to purchase a home may seem daunting — especially with higher interest rates. However, in spite of fluctuating trends, buying a home continues to offer a... [Read More](https://info.carringtonmortgage.com/information-center/why-homeownership-makes-sense-despite-interest-rates) ## Mortgage & Lending Services - [Buy a Home](https://www.carringtonmortgage.com/home-loans/buy-a-home) - [Refinance a Home](https://www.carringtonmortgage.com/home-loans/refinance-a-home) - [Mortgage Calculators](https://www.carringtonmortgage.com/tools/calculators) - [The Loan Process](https://www.carringtonmortgage.com/tools/loan-process) - [Find an Expert](https://www.carringtonmortgage.com/find-an-expert) - [Home Builders](https://www.carringtonmortgage.com/Partner-with-Us/home-builders) - [Real Estate Agents](https://www.carringtonmortgage.com/Partner-with-Us/real-estate-agents) ## Terms - [Privacy Policy](https://www.carringtonmortgage.com/legal/privacy-policy) - [California Consumer Privacy Act Notice](https://www.carringtonmortgage.com/legal/ccpa-notice) - [State Licensing](https://www.carringtonmortgage.com/legal/state-licensing) - [Terms and Conditions](https://www.carringtonmortgage.com/legal/terms-conditions) - [Best Practices](https://www.carringtonmortgage.com/legal/best-practices) - [Fair Lending Statement / HMDA Notice](https://www.carringtonmortgage.com/legal/fair-lending-statement) - [Consumer Fraud Alert](https://www.carringtonmortgage.com/legal/consumer-fraud-alert) - [Equal Opportunities](https://www.carringtonmortgage.com/legal/Equal-opportunities) ## Manage Your Mortgage - [Payment Options](https://www.carringtonmortgage.com/payment-options) - [Mortgage Assistance](https://www.carringtonmortgage.com/mortgage-assistance) - [Disaster Assistance](https://www.carringtonmortgage.com/disaster-assistance) - [Scheduling Servicing Fee](https://www.carringtonmortgage.com/schedule-of-fees) - [Payoff Statements](https://www.carringtonmortgage.com/payoff-statements) ## Contact Us - Current Customers ## About Us - [Our Mission](https://www.carringtonmortgage.com/our-mission) - [Foundation](https://www.carringtoncf.org) - [Holding Company](https://www.carringtonhc.com) - [Accessibility](https://www.carringtonmortgage.com/accessibility) - [Press and Media](https://www.carringtonmortgage.com/pressandmedia) - [Contact us](https://www.carringtonmortgage.com/contact-us) ## Get the App [![](https://info.carringtonmortgage.com/hs-fs/hubfs/raw_assets/public/Templates/2022/svg/Carrington-mobile-apple.jpg?width=135&height=42&name=Carrington-mobile-apple.jpg)](https://apps.apple.com/us/app/carrington-mobile/id1673471360) [![](https://info.carringtonmortgage.com/hs-fs/hubfs/raw_assets/public/Templates/2022/svg/White-Google-1.jpg?width=135&height=42&name=White-Google-1.jpg)](https://play.google.com/store/apps/details?id=com.carringtonms.CMSMobile2&pli=1) [Icon-Facebook](https://www.facebook.com/CarringtonHomeLoans/) [Icon-Twitter](https://twitter.com/CarringtonMS) [Icon-Linkedin](https://www.linkedin.com/company/carrington-mortgage-services-llc) [Icon-Instagram](https://www.instagram.com/carringtonmortgage/) Icon-EHO Consumer Access NMLS ID #2600 | Copyright 2026 Carrington Mortgage Services, LLC. All rights reserved. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "url" : "https://info.carringtonmortgage.com/information-center/author/marketing" }, "dateModified" : "2023-04-06T16:13:55.981Z", "datePublished" : "2020-01-02T18:38:17.000Z", "headline" : "Which Mortgage is Right for You - Adjustable-Rate, Interest-Only, or Fixed-Rate?", "image" : [ "https://info.carringtonmortgage.com/hubfs/CHL%20Knowledge%20Base/Which%20Mortgage%20Is%20Right%20For%20You%20Article.jpeg" ], "mainEntityOfPage" : { "@id" : "https://info.carringtonmortgage.com/information-center/which-mortgage-is-right-for-you-adjustable-rate-interest-only-or-fixed-rate", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://info.carringtonmortgage.com/hubfs/carrington_logo_final_2col_rgb-sm-200.png" }, "name" : "Carrington Mortgage Services LLC" } } ```