I am in Denmark where the real-estate market is a bit different. The sane way to do it now (with the expectation that interest rates drop): 1. Variable rate sh

I am in Denmark where the real-estate market is a bit different. The sane way to do it now (with the expectation that interest rates drop): 1. Variable rate short-termed loan - these are adjusted to the index called CITA. 2. When the rate is sufficiently low, refinance with a fixed rate loan. 3. If the interest rate increases, sell of the fixed rate loan at a discount and refinance with either a higher fixed rate or variable rate, depending on risk profile. (In Denmark a lot of people sold their loan at rate 80 last year due to increasing interest rates).