• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Phil McDermott
REALTOR®, GRI
(612) 205-7022
  • Home
  • Neighborhoods
  • Buyers & Sellers
    • Buyer Information
    • Seller Information
    • What’s My Home Worth
  • Mortgage
    • Borrower Information
    • Mortgage Rates
    • Mortgage Calculator
  • About Phil
    • About MyTwinCitiesRealty.com
    • About Phil
  • Contact

Which type of loan is best? Fixed or Adjustable?

That is dependent on several factors; how long you plan to stay in your home, your interest-rate outlook, your budget, and your tolerance for risk.

Adjustable-rate mortgages are sometimes initially cheaper than fixed-rate loans. And they can be a good deal if you know you’re going to stay in your home for a relatively short period of time. But you run the very real risk that interest rates could rise sharply and drive up your monthly payments. Fixed-loans, on the other hand, cost more but offer no surprises. This comfort for many is worth the added price.

At the most basic level, mortgages come in two categories: fixed rate and adjustable. In both cases “rate” refers to the rate of interest you pay the bank for the privilege of borrowing its cash.

 

Primary Sidebar

Phil McDermott headshot

Phil McDermott

REALTOR®, GRI
(612) 205-7022
Contact Phil

Categories

  • Buyer Tips
  • Homeowner Tips
  • Market Reports
  • Minneapolis
  • Mortgage
  • MyTwinCitiesRealty.com
  • Seller Tips
  • Twin Cities Communities
  • Twin Cities Real Estate News

Footer

Phil McDermott

(612) 205-7022|Contact Phil
Real Estate Masters

sitemap   •   admin   •   ©2023 All Rights Reserved  •  Real Estate Website Design opens in new window by IDXCentral.com