If you expect to stay in the home for a long period of time, a fixed rate mortgage can give you the peace of mind of predictable, fixed monthly principal and interest payments that make budgeting easier.
Plan to stay in the home for just a few years? Or expect your income to rise over time? An Adjustable Rate Mortgage, which offers a lower interest rate and lower monthly payments in the first few years, could work for you.
If you want to lower your monthly payment, shorten the term of your loan, or take out extra cash to make home improvements or consolidate debt, refinancing could be a smart move for you.