Your mortgage loan has a significant role to play in your financial life. You might be already confused whether to go for fixed mortgage rate or adjustable mortgage rate. Well-wishers might also add to your confusion, when they advice you to go with fixed mortgage rate saying that it entails lower risk than a variable rate. Why is this so? Read on to know why it is considered the best mortgage rate.
Advantages And Disadvantages
In this program, the rate of interest remains fixed throughout the loan’s term. The monthly repayments are also not affected by inflation. In comparison, the adjustable mortgage loan has an adjustable rate or interest that rises or lowers with the fluctuations in the economy.
Here is how you benefit if you choose a fixed mortgage rate:-
Like there are two sides to a coin, there are two sides to a fixed mortgage loan too. Yes, I am referring to its drawbacks. You should be aware of these as well, so here they are-
Finally, to make the right choice, seek professional help. A financial advisor will be able to help you make the right choice as per your lifestyle, income and needs.