Choosing between Fixed and Adjustable Mortgage Rates Utah Lenders Offer

Are you thinking of getting a loan from any of the mortgage lenders Utah locals rely on? Perhaps you’re now earning enough and can afford to buy your dream home after years of working and saving. Today is the best time to buy one while the real estate market is slowly picking up. Utah real estate statistics show that there has been an estimated 14.19 percent jump in the number of housing units in the state from 2000.

The Mortgage Bankers Association reports there are approximately 430,370 homeowners in the state with mortgages. Although you might see a variety of mortgage rates, they generally fall under two categories: fixed-rate and adjustable-rate mortgages. Read about what these can do for you.


As the name implies, a fixed-rate mortgage has a set interest rate throughout the loan term. Fixed-rate mortgages are locked for 15, 20, and 30 years despite fluctuations in mortgage interest rates. If you plan to keep your house for at least a decade, the locked-in rate makes it easier for you to budget your money for other investments or a few luxuries.

However, like other arrangements, there is a drawback to a fixed-rate mortgage. Interest rates are usually higher compared to an adjustable mortgage rate. Should rates fall among mortgage companies in Utah, you still pay the same interest rate—which is now higher—for your loan.


An adjustable-rate mortgage has an interest rate that adjusts as the market rate changes. It has significantly lower rates than fixed mortgages, which, surprisingly, remained affordable even when interest rates on fixed mortgages dropped in 2010. An adjustable-rate mortgage is a good option if you plan to sell your property after a few years.

While an adjustable-rate mortgage has a period where the initial interest rate stays the same, you eventually pay the new rate—whether it jumps up or goes down—after this said period. That means your monthly mortgage payment will either increase or decrease. There is hardly any consistency in payments for an adjustable-rate mortgage which makes it a challenge when you budget your finances.

For now, if you plan to get a short-term mortgage for five years, adjustable mortgages rates are more popular than fixed mortgage rates Utah lenders offer. Fortunately, there are mortgage lenders such as the Altius Mortgage Group that can discuss your options after examining your financial situation and capacity. Which mortgage you choose ultimately depends on your short-term and long-term plans.

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