When St. John buyers get to the loan type conversation with their lender, most already know the terms — fixed rate and adjustable rate — but aren't sure how to actually choose between them. The right answer depends almost entirely on how long you plan to stay in the home.
A fixed-rate mortgage locks your interest rate for the life of the loan. An adjustable-rate mortgage (ARM) offers a lower introductory rate for a set initial period, then adjusts periodically based on market rates.
| Fixed Rate | Adjustable Rate (ARM) | |
|---|---|---|
| Rate | Locked for life of loan | Fixed initially, then adjusts |
| Monthly Payment | Predictable, never changes | Can increase or decrease after initial period |
| Initial Rate | Typically higher than ARM intro rate | Often lower than fixed for intro period |
| Best For | Long-term homeowners who value stability | Buyers who plan to sell or refinance before the adjustment period |
If you're confident you'll be in your St. John home for 10+ years, the fixed rate's predictability is almost always worth the slightly higher starting rate. If you know you'll sell or refinance within five to seven years, a 5/1 or 7/1 ARM's lower intro rate could save you meaningful money during that window.
We knew we'd be in the house for only five years before moving to something bigger. The ARM saved us noticeably on monthly payments for that entire time.
— St. John Buyer, 2026