Fixed or Adjustable?Information for Sellers
Choosing between a fixed rate or adjustable rate loans is the single most important nail-biter of a decision you'll ever make when choosing a mortgage. The mortgage formula -- the method used to determine how much you pay based on your interest rate -- is the same for both types of mortgages.
What differs is the very good chance that your monthly payment amount will change through the life of the loan.
Forget it. You can't predict the future course of interest rates. If you could, you could make a fortune investing in bonds and interest-rate futures and options. Even the pros on Wall Street can't make these predictions with any consistent accuracy.