Variable-rate and even interest-only mortgage loans are incredibly popular right now. But, considering that mortgage interest rates WILL increase in the next couple years (every financial indication says they will), wouldn't it be a better idea to get a good 'ol fashioned fixed-rate mortgage?<br><br>...or does this all depend on how long you plan to live in the house? Say, you think you will be moving in 3-5 years, then is it always in the borrower's interest to take out a variable interest rate loan?<br><br>(In case it isn't obvious my first house purchase is looming. If not this summer, then next). <br><br>
Loc: United States
I got fixed- I don't know if you should get a mortgage based on any future plans to move, because you never know what your situation may be in 3 or 4 years.<br><br>I definitely don't think this is the last house I'll ever buy, but I'll cross that mortgage bridge when I come to it...<br><br><br>Back in Black...
Loc: United States
I'm happy - I got locked in at the high 5's somewhere (5.8 I want to say?)- there were some benefits I remember to going with a variable rate, but for the life of me I can't remember what they were...<br><br>I'd have to go back and ask the mortgage broker. That might be a good first step for you- have a broker explain the pros and cons of each, and make your decision from there...<br><br><br>Back in Black...
30-year fixed. We're around a 6.2% interest rate on the loan, so re-financing isn't really worth it, and we plan on staying in the house for a while.<br><br><br><br>CreativeGuy: For your "fix" of design software tips, tricks & commentary.
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I originally purchased with an adjustable 30 yr because it was the least expensive way in the door. Re-fi after a year with lower adj. rate, with money out to make improvements. Each year the apprasial is going up and up, Re-fi again last year with a fixed 15 yr, rates are still very good, the monthly payment (which includes property taxes) is much higher than previous but we're paying on the principle. We crunched the numbers and it saves a bundle.<br><br><br><br><br><br>
30 year fixed. Sure, rates may (may) drop, and if they do I can refi, but and here's the big thing, when (not if) rates go up, you'll be able to tell who has a fixed rate from the big smiles we'll be wearing. <br><br>Take it from me, stay far away from the interest only loans. They're big business with lenders right now. Want to know what the next big business item will be? Foreclosures.<br><br>Good luck with your new home. It's such a great thing to have your own house. <br><br>
Loc: Beautiful Southern California
I refinanced a few years back on a fixed 15 year mortgage. I'm planning a remodel right now simple because the house prices in California are soring through the roof! I debated on selling but, comparable houses would be worth three times as much and the taxes would be huge.<br><br>
Thanks to all!<br><br>So far EVERYONE has fixed rate. Interesting. I've been reading various magazine newspaper articles (here is one from this morning) that say the opposite.<br><br>I'll be talking to someone tomorrow and over the weekend about this stuff (I'm such a noob). My wife still hasn't found a position in LV yet, so we're not exactly ready to start signing anything anyway.<br><br>
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