People who choose adjustable rate mortgages end up realizing that fluctuating lending rates can be a spanner in the works when it comes to budgeting. Worse still, if interest rates stay consistently high, they may be in danger of paying much more than they initially thought.
That is why when interest rates fall, it is a good idea to refinance your floating rate loan with a fixed rate mortgage to gain more time to repay and avail lower interest rates. Refinancing is a good option if you are paying variable monthly installments and wish for more consistent (and sometimes lower) payments. [Read more…]