Fixed vs Adjustable Rate Mortgage for a Starter Home: Which Costs Less Over 5 Years?

A 5/1 ARM saves roughly $8,400–$9,000 over five years compared to a 30-year fixed on a $375K starter home—but only if you move or refinance before rates adjust.

A 5/1 ARM saves roughly $8,400–$9,000 over five years compared to a 30-year fixed on a $375K starter home—but only if you move or refinance before rates adjust.