Summer is one of the busiest times of the year for homebuyers, and with mortgage rates remaining elevated, many are looking for ways to make homeownership more affordable.<\/p>\n
As part of KPRC 2\u2019s weeklong series on navigating the homebuying process, we\u2019re taking a closer look at adjustable-rate mortgages (ARMs) and who may benefit from choosing one over a traditional fixed-rate loan.<\/p>\n
What is an adjustable-rate mortgage?<\/p>\n
An adjustable-rate mortgage, or ARM, typically offers a lower interest rate than a traditional fixed-rate mortgage during an initial introductory period, often the first five years.<\/p>\n
For example, with a 5\/1 ARM, the interest rate remains fixed for the first five years. After that, the rate can adjust once a year based on market conditions, meaning monthly mortgage payments could increase or decrease.<\/p>\n
According to mortgage expert Charles Villafana, ARMs are often a good option for buyers who don\u2019t expect to stay in their home long term.<\/p>\n
Who should consider an ARM?<\/p>\n
An adjustable-rate mortgage may be a good fit for:<\/p>\n
First-time homebuyers<\/p>\n
Buyers who plan to move within five years<\/p>\n
Homeowners expecting to relocate for work or upgrade to another home<\/p>\n
Buyers looking to take advantage of lower initial monthly payments<\/p>\n
Because the introductory interest rate is typically lower than a 30-year fixed mortgage, borrowers can save money during the first several years of the loan.<\/p>\n
Who should avoid an ARM?<\/p>\n
Experts say adjustable-rate mortgages are generally not the best choice for buyers purchasing their \u201cforever home.\u201d<\/p>\n
If you expect to live in your home for 10, 20 or even 30 years, a traditional 30-year fixed-rate mortgage may offer more financial stability.<\/p>\n
While fixed-rate mortgages often come with a higher interest rate upfront, currently averaging around 6.5%, according to KPRC 2\u2019s reporting, the interest rate remains the same for the life of the loan, providing predictable monthly payments.<\/p>\n
More homebuying tips coming this week<\/p>\n
KPRC 2\u2019s homebuying series continues throughout the week with practical advice for homeowners and renters.<\/p>\n
Coming up:<\/p>\n
Thursday: How home equity loans can help homeowners consolidate debt at a lower cost than many credit cards.<\/p>\n
Friday: How to spot rental scams and protect yourself from losing money while searching for a place to live.<\/p>\n
Breaking News Alerts<\/p>\n
More Stories Like This In Our Email Newsletter<\/p>\n
Copyright 2026 by KPRC Click2Houston – All rights reserved.<\/p>\n","protected":false},"excerpt":{"rendered":"Summer is one of the busiest times of the year for homebuyers, and with mortgage rates remaining elevated,…\n","protected":false},"author":2,"featured_media":366196,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[129677,14918,56,58,57,4529,17150],"class_list":["post-366195","post","type-post","status-publish","format-standard","has-post-thumbnail","category-houston","tag-first-time-home-buyer","tag-home-buying","tag-houston","tag-houston-headlines","tag-houston-news","tag-mortgage","tag-moving"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/366195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=366195"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/366195\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/366196"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=366195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=366195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=366195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}