Fixed Rate Mortgage vs. Adjustable Rate Mortgage – Which Is Right for You?
Today, Fixed Rate Mortgages are most common with homebuyers. Because rates are currently relatively low, Adjustable Rate Mortgages are generally unattractive. However, a situation in which an Adjustable Rate Mortgage may be best is if the homeowner knows exactly when he or she will be moving out of the home. Though a lot of people think that they know when they are going to move, life can get in the way. Let’s say for example you got a 7 year Adjustable Rate Mortgage, but you end up staying in the home for longer than 7 years. If that happens, and your rate adjusts, you have nowhere else to go except to try and refinance your mortgage into a Fixed Rate Product.
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