What are the Pros and Cons of the different interest rate types?
Interest rates can fluctuate with very little warning. Therefore this is another important area which must be seriously thought about due to the different types of interest rates that are available and their implications. Current mortgage interest rates depend on the financial markets. As these rates fluctuate, so too can the amount you pay each month. However, mortgage lenders put together “Special offers” to entice you to buy from them. Some of these special offers include fixed, variable and discounted offers. Each of these offers has its own advantages and disadvantages. For example, you may think that interest rates are going to decline so you settle on a variable rate but if the rate goes up, you will have to pay more. Whereas a fixed rate remains static for a set period of time so that you have a set rate that you pay each month, irrespective of the actual rate at that time.
