Most homebuyers choose a fixed-rate mortgage (FRM) over an adjustable-rate mortgage (ARM). Fixed-rate mortgages have the same rate and payment over the life of the loan, so there are no surprise costs. Adjustable-rate mortgages have a fixed rate for the first few years (usually 5-7), then your rate can move up or down with markets. An ARM might be good if you plan to sell in a few years. Otherwise, it presents the danger of your mortgage rate and payment eventually increasing.