3 ms·
Fixed rate loans are only fixed for very short periods like 2-3 years, so how is this relevant? And they then usually turn into really bad interest rates when t
by mattmanser 10y ago
Fixed rate loans are only fixed for very short periods like 2-3 years, so how is this relevant? And they then usually turn into really bad interest rates when they expire, and you'd have to remortgage in a bad market.
You have to pay lawyers fees, surveying fees, taxes, realtor fees, etc. when you buy a house, if you only have it for 2-3 years you have to factor all those into the monthly costs too.
- dragonwriter 10y agoNo, you can get fixed loans that are fixed for the life of the loan. And you usually should when interest rates are low, because ARMs in that case usually have little room to adjust down and a lot of room to adjust upward when indexes riser, which they are nearly certain to significantly when you buy near the historic bottom, so even with the premium on the starting interest rate, fixed rate loans are better in the long run.
- hx87 10y agoWhere do you live? 15-year and 30-year fixed rate mortgage loans are available pretty much everywhere in North America.