In today’s economy, a fixed rate mortgage is the best route for most people to go through. With the interest rates threatening to rise, locking in a low rate today could save you lots of money in the future.
A fixed rate mortgage is usually a little higher than an adjustable rate mortgage. This is because the lender is forced to offer the same rate no mater what the prime rate may rise to in the future. In the 70’s and early 80’s, people with fixed rate mortgages were in a nice position as flexible rate mortgages climbed into the 20% rates.
There is an exception to the fixed rate rule, but it takes some serious discipline. If you can make yourself pay off the loan BEFORE the first interest rate hike then a flexible rate will work for you View the rest of this article
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