Which is the Best Mortgage Rate – Fixed, Adjustable Or Balloon Rate?
When surfing around the internet you will be bombarded with ads promising you that their low mortgage rates will keep you out of debt. Do not be fooled by these misleading advertisements. The truth is securing yourself the best loan is not based on the lowest rate, but rather on how the rate will impact your total mortgage as a whole. From my experience as a bankruptcy lawyer I have noticed that borrowers who focus only on interest rates end up accumulating large sums of debt that they have never envisioned. The reason for this is that interest rates are merely an extension of your total sum. A key role in your total mortgage is the type of rate you chose. There are three main types of mortgage rates- Fixed, Adjustable-rate mortgage and balloon mortgage. A fixed rate means that the interest rate does not change, so the principal and interest payment you make stay the same for the term of the mortgage note. When shopping for an adjustable-rate mortgage, ask about the index (the money so
