ARMs and fixed-rate mortgages can be helpful, but not in every situation. For instance, an ARM might be a good option if you don’t mind spending more money early on. Banks typically lower ARM interest rates as you make larger initial payments, alleviating your financial burden in later stages. By contrast, a fixed-rate mortgage may be ideal if you want to settle down in your current house. You don’t plan on moving, and fixed rates offer a sense of stability with your finances. Plus, you can make additional payments to repay your mortgage faster.