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Fixed Rate Mortgage vs. Variable Rate Mortgage

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petekolackovsky Joined: 14 Sep 2011 Posts: 53 Location: Calgary, AB 247.79 Dollars($)	Posted: Tue Sep 27, 2011 6:31 am    Post subject: Fixed Rate Mortgage vs. Variable Rate Mortgage Like 0 Dislike 0 A fixed rate mortgage means that you do not have to worry about interest rate fluctuations in the future on your home. this means that the mortgage has a fixed interest rate that will remain the same regardless of whether market interest rates rise or fall. The rate is "locked in." A variable rate Mortgage is the opposite of this. A mortgage with an adjustable interest rate changes with the market interest rate. The mortgage holder is protected by a ceiling, a maximum interest rate that is paid, which might be reset annually. Adjustable Rate Mortgages (ARM's) usually start with better rates than fixed rate mortgages to compensate for the higher interest rate the borrower may pay in the future. Would the community agree that a fixed rate is better than an ARM, or vise versa? [External links deactivated as per forum rules. Thanks.] _________________ Pete Kolackovsky Mortgage Consultant http://www.mortgage-calgary.com
adonis Joined: 22 Oct 2005 Posts: 10562 Location: ALASKA 1089.18 Dollars($)	Posted: Tue Sep 27, 2011 8:20 pm    Post subject: Like 0 Dislike 0 I personally feel that fixed rate is a better option compared to an ARM as the rates remain fixed and are no affected by the rise or fall in the market interest rates. In case if rates fall, the borrower can refinance the mortgage and take advantage of the lower rates. _________________ Procrastination is the enemy of your financial success
sabrinatoss Community Expert Joined: 16 Jan 2011 Posts: 516 Location: Australia 82.74 Dollars($)	Posted: Tue Sep 27, 2011 8:49 pm    Post subject: Like 0 Dislike 0 Hi mortgage! A loan or mortgage with an interest rate that will remain at a predetermined rate for the entire term of the loan. _________________ Home Loan, Mortgage Insurance Calculator, Mortgage Broker

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