Flex Term Fixed-Rate Mortgage
The flex term fixed-rate. offers repayment terms ranging from 16 to 29 years. Much like the 15 year mortgage, it enables you to own your home in less time than a 30 year. fixed-rate mortgage. .
Furthermore, why is an adjustable rate mortgage a bad idea?
Why is an adjustable rate mortgage (ARM) a bad idea? An ARM is a mortgage with an interest rate that changes based on market conditions. They are not recommended since there is increased risk of losing your home if your rate adjusts higher, and if you lose your job, your payment can become too much for you to afford.
Also question is, what is better fixed or adjustable rate mortgage? But if interest rates stay low or even fall, adjustable–rate mortgages can potentially save you a lot of money. Fixed–rate mortgages may be a better choice for those who plan to stay put or need reliable mortgage payments that never change.
Similarly one may ask, what are the cons of an adjustable rate mortgage?
Cons of an adjustable–rate mortgage
- Rates and payments can rise significantly over the life of the loan, which can be a shock to your budget.
- Some annual caps don’t apply to the initial loan adjustment, making it difficult to swallow that first reset.
- ARMs are more complex than their fixed-rate counterparts.