From Time Magazine:

Homebuyers have two options for mortgages: fixed-rate and adjustable-rate. Fixed-rate mortgages have a constant interest rate for the term, providing stability but at higher initial rates. Adjustable-rate mortgages offer lower initial rates but fluctuate with market conditions. Refinancing is also an option for homeowners wanting to capitalize on low rates. The best choice depends on personal financial situations and real estate properties. Fixed-rate mortgages are more popular, while less than 10% of mortgages are adjustable-rate loans. Adjusted-rate mortgages are better suited for those who can handle monthly payment fluctuations and are comfortable taking on some risk for lower initial rates.



Read more: Fixed vs. Adjustable-Rate Mortgages: Pros, Cons and Differences