Post by tonymcfallen on Jun 4, 2020 0:44:32 GMT -8
An adjustable rate mortgage allows the interest rate on your loan to vary with prevailing interest rates. If rates go up, so will your mortgage rate and monthly payment. If rates increase a lot, you could be in big trouble. If rates go down, your mortgage rate will drop and so will your monthly payment. It is generally safest to stick with a fixed rate loan to safeguard against rising interest rates. If rates drop, refinance your mortgage to take advantage of lower rates.