- When interest rates falls you don’t have to go through the hassle of refinancing and paying the fees that go with it. Instead your monthly payments adjust automatically to reflect the lower rates.
- The lower introductory rates mean your payments for the first few months are going to be small. Take advantage of this time to save and invest the extra cash for a larger return.
- Budgeting is not easy. Having to work around fluctuating monthly payments makes it difficult to create a household spending plan and savings.
- Refinancing an adjustable rate mortgage is pricey. If you choose to switch to a fixed rate mortgage, you may end up spending more money than what you would have, sticking with rising interest rates.
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