The main difference between a fixed rate mortgage and an adjustable rate mortgage is that the interest rate on a fixed rate mortgage remains the same for the life of the loan, while the interest rate on an adjustable rate mortgage can change over time. Fixed rate mortgages provide peace of mind and stability, as you know your monthly payments will remain the same through the loan's term. Adjustable rate mortgages, on the other hand, can be beneficial in a healthy economic environment — where interest rates are expected to decrease — as they usually cost less to borrowers over the long term. However, due to the Federal Reserve's recent rate hikes, adjustable rate mortgages are not recommended at this time. Source 1 and Source 2.