Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in

Ask Dave

Trading Fixed For Adjustable

Patricia wants to do something staggering ... trade in her fixed rate mortgage to get an adjustable rate!

QUESTION: Patricia bought a home a year ago at a 6.5% fixed interest rate. She’s considering an adjustable rate mortgage because the payments are cheaper, and could cap at 10%. What does Dave think? Dave almost laughs at this one.

ANSWER: They are cheaper today, but from there they will adjust up. So what if it can’t go above 10% … WHOOPIE! You’ve got 6.5% now! Adjustable rate mortgages are an awful product. Stay with what you’ve got. Love the stability that you have, and don’t put your home at risk for a point.

Thank you! Your guide is on its way!

Want to Buy a House With Confidence?

Want to Buy a House With Confidence and Peace of Mind?
 

Want to Buy a House With Confidence and Peace of Mind?