For loan advice. Is fix or adjust. rate better for me?

stacey b asked:


My loan penalty will be over in Feb.2008, from fix at 10% for $5292 a month, after that it will be adjustiable rate. I can’t refinance for lower rate because of self employed and low credit score. wonder if adjust. will be ok for me? how does adjust. work? We are in Contra Costa, california.

This entry was posted on Monday, June 1st, 2009 at 2:17 am and is filed under Renting & Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “For loan advice. Is fix or adjust. rate better for me?”

  1. hail_loki Says:
    June 2nd, 2009 at 2:44 pm

    FIXED FIXED FIXED FIXED FIXED RATE ONLY!!!!

    people are losing their shirts to adjustable rates.

  2. FATBOY Says:
    June 4th, 2009 at 8:56 am

    An adjustable interest rate is one that flows with the market. That means the bank can make your interest rate whatever the going rate is. This month it could be 5%, two months from now it could go up to 25 %, or go done to 3%. An adjustable rate is not a very good one to get. This is the same all over the country, so being in Cali will not change the way adjustable rates work. Try your darndest to get a fixed rate, even if it is a little on the high side.