What do you think it’s better? Fixed Rate Mortgages or variable rate ones?
Each of them has its own advantages and drawbacks, and surely there’s a risk to take when we decide for one type or mortgage or another.
Fixed rate mortgages are good if the rates have a growing trend: why not make a deal at the current rates, and pay less than some other people who make their deals in a year from now? The advantage is that you pretty much know all the variables: you know what your average income is, and you know how much the mortgage will cost you per year, so you can make some long term calculations and budgeting.
Variable rate mortgages can be good if the market becomes more and more crowded, thus more competitive, and all major players decrease the rates, in order to attract new clients. Then you won’t be happy to pay a fixed rate, when you see the rates dropping every year.
Anyway, before you decide, you’d better do your homework right and compare as many options as you can, to see what’s best for you. This can be done online, on websites like MoneyMagic, where you can apply online to get your free mortgage quotes.
