House Loan adjustable or fixed

[genchan]

What would everyone suggest, a fixed rate house loan or a adjustable rate loan. The adjustable would allow me to buy a more expensive house, but I'm a little worried that interest rates may rise and end up being a lot more expensive in the long run. Am I thinking correctly here?

[terry1156]

Re: House Loan adjustable or fixed

With current interest rates so low, I would go with the fixed rate loan. There is no telling what will happen with interest rates and they are likely to rise which could get quite expensive. My 2 cents.

[34saving]

Re: House Loan adjustable or fixed

It all depends on how long you intend on staying in the house. If you think you're in for the long term, go with the fixed. If you're in for less than 5 or 7 years an ARM might be the way to go.

[Tree0164]

Re: House Loan adjustable or fixed

Go with the fixed rate. If you can't afford it on the fixed rate you are buying too much house.