Fixed-rate vs adjustable-rate mortgage: pros, cons, and when each makes sense for Florida buyers.
Written by Renzo Johnson, Licensed MLO · NMLS #PENDING · Last updated: February 2026
- Fixed rate: same payment for 30 years (or 15/20). Predictable and safe
- ARM: lower initial rate for 5/7/10 years, then adjusts annually
- ARM savings: typically 0.5-1.0% lower initial rate
- ARM risk: rate can increase after fixed period (subject to caps)
- Choose fixed if: you plan to stay 10+ years, want certainty, rates are reasonable
- Choose ARM if: you plan to sell/refi within 5-7 years, want lowest initial payment
- Florida military families: ARM aligns with PCS rotation cycles (3-5 years)
- Florida snowbirds: ARM suits buyers who may sell second home in 5-10 years