Should I Ever Consider an Adjustable Mortgage?

I had never thought I would buy a home using an adjustable rate mortgage. My home loans had always been a fixed rate with the exception of my now investment property. We fortunately now have a fixed rate mortgage on this property, thanks to the loan modification we received.

An adjustable rate mortgage is something I will never do again. If you are looking to get a mortgage, look into a fixed rate mortgage.

A fixed rate is very simple to explain. As long as you have the mortgage the rate never changes.

An adjustable rate can spell trouble. Especially, with the unknown future of our economic situation. Rates can end up fluctuating drastically. At first you will have a lower interest rate and payment, but if interest rates go up, your payments goes up along with it.

Choose a fixed rate mortgage and if at all possible make it a 15 year mortgage while your at it.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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