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Adjustable Rate Mortgages vs. Fixed-Rate Mortgages.
Which is better?
We just talked about getting "canned" advice when it's "best" for you to finance your mortgage. Well, these same people will try to give you general "rules of thumb" about which kind of mortgage structure you should elect too. Once again, your decision should be made based on sound financial calculations that are tailored to your
specific needs!
If you just pick out the advertisement that sounds good, and choose the wrong type of loan, you may end up either paying too much now, or paying too much later.
Picking a lower adjustable rate might sound great now, but may come back to haunt you in a few years time. It is extremely important for you to understand the terms and fine print that are contained in adjustable-rate mortgages.
MAKE SURE YOU UNDERSTAND THE FINE PRINT BEFORE
YOU SIGN ON THE DOTTED LINE!
It's extremely important to know IF and WHEN you can "float" and "lock-in" the rates on your fixed or adjustable-rate mortgage during your financing process. No one on this planet can predict what interest rates will do. But it's important to understand the fine-print of your mortgage so you have the best advantage to lock-in your mortgage at the lowest rate possible!
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