In general the interest rate on the fixed-rate mortgage is relatively higher than the rate you can get for an adjustable rate mortgage. Your lending institution in Knoxville has to factor in any possible increases in interest rates over the term of the mortgage, and needs to compensate for any losses it may incur if the rates go up. This mortgage offers the most peace of mind for most people purchasing a home in Knoxville because you can count on the monthly payments to remain the same for many years.
An adjustable-rate mortgage comes with a lower interest rate, however you are taking a gamble with this type of mortgage. If the interest rate rises considerably at any one time during your loan period, then you may find yourself with monthly payments that you simply cannot afford. You should consider all of the risks involved before deciding on this type of mortgage for your new home in Knoxville. It may not be worth the gamble, depending on your own budget and income.
The decision of whether to get a fixed-rate mortgage or an adjustable rate mortgage will be influenced by the present interest rate when you apply for the loan. Your loan officer in Knoxville can advise you as to whether it is a good time to get an adjustable rate mortgage or whether you should stick with a fixed-rate one.