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Hi there, I need some quick help.
I managed to get 2 options for mortgage rates-

1) Fixed 25 year for 3.74% for 4 years


2) variable of 2.45%, 25 years

I know that if the economy gets better, variable might be dangerous. What do you guys suggest?

4 Thoughts on BEST MORTGAGE RATE? variable or fixed?
  1. Reply
    February 9, 2014 at 8:41 am


    Never go variable unless you want to keep adjusting your mortgage and keep an eye on the interest rates weekly. Each time you adjust, you will have to take out a new mortgage and pay closing costs.

  2. Reply
    February 9, 2014 at 9:15 am

    Go for the fixed for 25 years and pay it down. If you can handle a 15 year fixed, do that instead.

    Adjustable rate loans are good for short term, but there is risk, and risk should be calculated and minimized. If this is for a home that you will stay in for a while, go the fixed loan route, and worry less.

    Not sure why you describe your fixed as fixed for 25 years… for 4 years. Sounds like this could be a short term fixed rate which would not be recommended.

  3. Reply
    Nash P
    February 9, 2014 at 9:52 am

    Neither of those deals sound legit, best fixed rate loans are 25 year terms are around 4.75% if you’re paying like 1.5pts. Average is around 5.125%. 5/1ARMs are around 3.75% with 1pt at best. If the price of gas is $ 2.20 on average around your area and 1 place is advertising .50/gal you know something isnt right. No one is that cheap. Call a few major lenders and they’re verify what I’m telling you.

  4. Reply
    REI R
    February 9, 2014 at 10:36 am

    Fixed. Did they tell you at what rate the fixed rate will cap out at? You need to ask them what the graduated rate increase is and the cap out rate.

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