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Find out how much you can afford, what your monthly payments might be and more!
THE DIFFERENCE BETWEEN ARM AND FIXED RATE MORTGAGES
When choosing between an adjustable rate mortgage (ARM) or fixed rate, it’s important to understand how they work and what your needs are. Meet Matt and The Dawsons and see what choice they made.
Matt relocates frequently for work.
Matt enjoys the lower initial interest rate.
The Dawsons love the area where they live and found their dream home.
The Dawsons prefer the predictability of long-term, stable payments.
How long am I going to stay in my home?
If you don’t plan to stay in your home for a long time you may want to consider an ARM, which typically has a lower initial interest rate than a fixed rate and you may save money in interest charges. The money you save could be put toward retirement, paying off debt, building an emergency fund, and more.
What can I afford?
Knowing how much you can afford to pay month to month in mortgage payments will also help you decide between an ARM or fixed-rate mortgage.