adjustable-rate-mortgage-vs.-fixed-rate-mortgage:-‘it’s-amazing-what-people-don’t-know-about-mortgages’

Adjustable-rate mortgage vs. fixed-rate mortgage: ‘It’s amazing what people don’t know about mortgages’

Financial Face-Off

Published: July 20, 2022 at 12:07 a.m. ET

More people are considering adjustable-rate mortgages as a way to (temporarily) lower their monthly housing costs, especially in expensive cities. Should you?

Most homebuyers go with fixed-rate mortgages, but adjustable-rate mortgages are becoming a more popular choice, especially for buyers in expensive housing markets. What should you know before you consider one? MarketWatch photo illustration/iStockphoto The face-off 

It’s tough out there for homebuyers. The median U.S. home price just broke the $400,000 mark for the first time ever (it’s at $407,600 to be exact, up 14.8% from a year ago, according to the latest figures). On top of that, the cost of a 30-year fixed rate mortgage has gotten much pricier too, with rates soaring to 5.51%, up from 2.88% a year ago.

Though…

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