* In general, ARMs give you a lower initial interest rate than many fixed-rate mortgages — sometimes up to 3 percentage points lower. That could help you buy a more expensive home or make your loan more affordable.

  * An ARM might also be the right choice if you don't plan to be in your home for more than a few years or you think interest rates might be headed lower.

  * A fixed-rate mortgage may be the right choice if you plan to be in your home for many, many years and you want the stability of making the same payment every month.