Fixed-Rate Mortgages vs Adjustable-Rate Mortgages

So, you’re ready to purchase a home. Whether this is your first or not, financing is one of the most vital steps in the process. Securing a mortgage will most likely be the route you’ll take, and there are many types out there – including the oh-so-popular fixed-rate and adjustable-rate mortgages.

Figuring out what mortgage you need can get confusing with so many factors to consider, including financial requirements, rate changes, and budgeting.

But fear not! A friendly lender will be your best guide in choosing which mortgage loan is best suited for you. People's Community Federal Credit Union has been helping prospective home buyers in Clark County and Southwest WA for over 70 years with every step of the financing process. 

Here we share our insights into the two mortgage types that come up most often: fixed and adjustable rate.

Is it Better to Have a Fixed Rate or Adjustable Rate Mortgage (ARM)?

It depends. Another important question to ask is if you want to lock into a mortgage rate or not. Rates refer to the percentage of interest that is charged on the home loan, which depends on which requirements you meet (such as credit score). Some bet on the stability of fixed-rates, while others ride the potential lows (and highs) of adjustable rates. 

At People's Community Federal Credit Union, we only offer fixed rate mortgages. We offer our members stability with payments that remain the same throughout the life of the loan. And here at People’s, we won’t sell your loan to another lender down the line.

Also known as variable-rate mortgages, ARMs have a rate that can change based on market changes. If you are interested in variable-interest loans or a second mortgage from People’s, we recommend learning more about our home equity lines of credit (HELOC) here. (Note that People's Community Federal Credit Union does not offer adjustable-rate mortgage loans).

Upsides to Fixed Rate Home Mortgages

Although adjustable rate home loans can offer lower initial rates (if you start a loan with a decent loan-to-value (LTV) ratio) and the potential for future lower rates, they can be unpredictable. Fixed-rate mortgages make it easier to set and stick to financial goals with long-term planning. They also offer:

• Predictability so your payments remain consistent and unchanged.
• No rising interest rates, simplifying budgeting.

View our current fixed rates here for mortgage loans and our mortgage payment calculator here.

Your Clark County and Southwest WA Home Loan Experts

People's Community Federal Credit Union has been here to support our members through the home buying process for over 70 years. Not just because we offer competitive rates, but because we treat you like our neighbor. So why choose People’s over a bank for mortgage loans? We don’t just see you as another application number, we personalize your loan experience. All our members receive the same great rates once approved, regardless of credit scores.

Securing a fixed-rate mortgage with People's Community Federal Credit Union in Clark County and Southwest WA isn’t just about signing papers, it’s about opening doors — to your new home and a relationship with us. From loan application to signing, we’ve got you covered.

Talk to one of our representatives today by giving us a call, filling out our contact form here, or stopping by one of our branch locations. Let’s make your home dream a financed reality!

Back to Mortgage Loans