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If you're wondering whether a Fixed Rate or Adjustable Rate Mortgage is best for you, take this simple test to find out. Just answer each question that best describes you by using the scroll bar to select your points. Then add up your points to find out what your score means.

Fixed Rate vs. ARM Indicator

How do you expect your income to change over the next 15 to 30 years?
Consistent for the term of the mortgage [1 point]
My income will rise later [2 points]
Interest rates are constantly changing and can be higher or lower
next month or next year. How do feel about current interest rates?
Interest rates are LOW now and may RISE later [1 point]
Interest rates are HIGH now and may FALL later [2 points]
How do you feel about the current rate of inflation?
The inflation rate is LOW now and may RISE later. [1 point]
Inflation rate is HIGH now and may FALL later. [2 points]
How would you be able to handle an increase in your mortgage amount?
I'm on a fixed income/can't handle an increase. [1 point]
I'm somewhat flexible/can handle small increase. [2 points]
I'm very flexible/can handle any increase. [3 points]

Now, Add Up Your Points!
Your Score

This chart is for your information and should only be used as a guide. Always
consult a qualfied mortgage professional before applying for a mortgage loan.
©1996 The Forms Group, All Rights Reserved

What Your Score Means...

If You Scored 4 or 5 Points: Between your need for financial stability and today's interest rates, a fixed rate mortgage is your best choice.

If You Scored 6 or 7 Points: Your score reflects a moderate amount of flexibility. Consider both adjustable and a fixed rate mortgages... and weigh your options carefully. Mortgage Shopping Tips can give you some things to consider.

If You Scored 8 or 9 Points: This may be a good time for you to consider taking advantage of an adjustable rate mortgage.

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