Question Details

Marty Cummin…, Home Buyer in 12144

is there a mortgage that allow interest rate to drop if rate go down without refinancing?

Asked by Marty Cummings, 12144 Tue Aug 19, 2008

I heard this on the radio

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Not really, once you sign a mortgage the reality that rates will go down is next to zero. Beware of ads that offer this has if they are going to risk it going down, you are going to risk it goes up. rates are still very low, you wont see them go lower as they dont have to, banks just are not loaning money, decreasing the rate will not make the banks loan more money. i actually believe next year at this time housing sales will be up slightly and so will the mortgages. get a 30 year fixed and be safe, dont gamble with your future. goo dluck
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0 votes Thank Flag Link Tue Aug 19, 2008
Hi Marty,
To answer your question, yes AND no. There are adjustable rate mortgages out there, some of which are fixed for a certain period and some that adjust every month. The positive side is that if rates go down, your rate goes down in step with it. On the downside, it works against you when rates go up. Don't fall for any deceptive advertising, take a fixed rate and the security that goes along with it.
0 votes Thank Flag Link Tue Aug 19, 2008
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