Should You Choose a Fixed or Variable?

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One of these is choosing between a fixed- or variable-interest-rate mortgage. True to its name, fixed-rate mortgage interest is "fixed" throughout the life of the loan. In contrast, the interest rate on a variable-interest-rate loan can change over time.

Should You Choose a Fixed or Variable? tip: common indexes. The most common indexes to which the interest on adjustable-rate mortgages is pegged are the 1-year constant maturity Treasury Index, the Cost of Funds Index (COFI), and the London Interbank offered rate index (libor).

One of these is choosing between a fixed- or variable-interest-rate mortgage. True to its name, fixed-rate mortgage interest is fixed throughout the life of the loan. In contrast, the interest rate on a variable-interest-rate loan can change over time.

On the other hand, a floating interest rate loan leads to a variable. fixed rate loan is a personal one and depends on your ability to take the risk. While both types of interest rates come with.

Should You Choose a Fixed or Variable? Buying a home is the single-largest financial commitment most people ever make. And sorting through mortgages involves a lot of critical choices. One of these is choosing between a fixed- or variable-interest-rate mortgage.

When you borrow money, you may have a choice between a fixed-rate loan or a variable-rate loan. Read on to find out how to choose which one is right for you. Image source: Getty Images.

Should You Choose a Fixed or Variable? Tip: Common Indexes. The most common indexes to which the interest on adjustable-rate mortgages is pegged are the 1-Year Constant Maturity Treasury Index, the Cost of Funds Index (COFI), and the London Interbank Offered Rate Index (Libor).

Although it would be ideal to provide a ‘one size fits all’ answer to the ‘fixed versus variable’ question, the reality is that the choice of which GridCredits plan you should choose should be determined by your situation, own financial goals and priorities. You need to take into account how your family uses energy and how much energy.

Is a fixed or variable-rate loan right for you? Ultimately only you can decide whether a fixed or a variable-rate loan is the right type of loan for your situation.

One of these is choosing between a fixed- or variable-interest-rate mortgage. True to its name, fixed-rate mortgage interest is “fixed” throughout the life of the loan. In contrast, the interest rate on a variable-interest-rate loan can change over time.