VARIABLE INTEREST RATES
WHAT IS A VARIABLE RATE?
Variable rate mortgages (or adjustable rate mortgages – ARM’s) fluctuate depending upon the interest rate environment.
WHEN IS A VARIABLE RATE A GOOD OPTION?
They may be a good choice if low payments in the near term are your primary requirement or if you will not live in the property long term (long enough for the rates to rise to an unacceptable level). Also, if interest rates are high and expected to fall, an ARM will ensure that you enjoy lower interest rates without the need or cost to refinance.
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