When applying for your mortgage, knowing what type of mortgage fits you best is key. Don’t jump in unless you know the rates and how they can change over the life of the loan.
A lender will usually offer you either a fixed rate or adjustable rate mortgage. Which one is right for you? Are you more comfortable with a fixed payment over the life of your loan or do you feel like taking a chance and hope your loan payment decreases due to lower interest rates in the future? There are advantages and disadvantages to each type.
Watch it to find out:
1. The benefits and drawbacks of both fixed and adjustable rate mortgages
2. Who and what determines the interest rate on adjustable rate mortgages
3. Which loan is saddled with a lender mark-up
This video will help you put some serious thought into deciding which type of mortgage works best for you by breaking down the pros and cons of each. Spoiler: an ugly mark-up lurks in one of these loans.
Fixed Rate or Adjustable Rate Mortgages