Fixed or Adjustable Interest Rate Mortgage:  Which Should I Choose?

There is a lot involved in buying a home.  First you must browse listings and find places that you are interested in.  Then you narrow the list down to those that best meet your needs and price range.  Once you have settled on something, you go through negotiations until you find a price that is agreeable with you and the seller.  Then you have to get a mortgage.

The thoughts of getting a mortgage make a lot of people cower in fear.  That's because if you've never been through the process before, there is much that you probably do not know or understand.  One of the most common questions is whether one should get a fixed or adjustable rate mortgage.

A fixed rate mortgage is one that has an interest rate that remains constant for the life of the loan.  That means that your payment is the same each and every month.  This type of mortgage is easy to understand and makes budgeting more predictable.

The downside to fixed rate mortgages is that if interest rates are high when you get your mortgage, your interest will remain high as long as you keep the original loan.  If you wish to take advantage of lower interest rates in the future, you will have to refinance.  That means more paperwork and additional costs....

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