A brainstorm about mortgage rates
If you're considering taking out a first home mortgage right now, you're doing it in an excellent market. The cost of housing has plummeted and mortgage rates are in the neighborhood of 5%, a recent low. Here are some of the basic choices you'll need to make to determine the kind of mortgage you'll need: * Variable vs. fixed interest rates: A variable rate is tied to an external interest rate, and rises and falls as the interest rate it is attached to rises and falls. A fixed interest rate is set at the time the home mortgage is written, and remains the same for the life of the mortgage regardlss of what prevailing rates do.