Fixed vs Variable Mortgage Rate: How to Choose

Published 2026 ? 4 min read

Fixed-rate and variable (adjustable) mortgages answer different questions. A fixed rate guarantees your payment for the term; a variable rate starts lower but can rise. The right choice depends on how long you'll stay and how much payment risk you can absorb.

How they differ

• Fixed: the same rate and payment for the whole term. Predictable, and cheap if rates rise.
• Variable (ARM): a lower starting rate that adjusts after an initial period. Cheaper up front, but your payment can increase.

When fixed wins

You plan to stay 5+ years, want certainty, or believe rates will rise. The premium you pay for the fixed rate is insurance against future increases.

When variable wins

You plan to move or refinance before the rate adjusts, or you're comfortable with payment variability and want the lowest possible starting rate.

The deciding question

Can you afford your payment if rates rise two points after the initial period? If the answer is no, the fixed rate is the safer buy regardless of the starting number.

Run the numbers

Use the mortgage calculator to compare your payment at both rates ? see the gap, then decide if the certainty is worth it.