So which one really is better? Depends on interest rate and personality If you’re going to stay in your home for 30 years or more then fixed rate loan will usually give you a better deal. As your income increases, you won’t have to worry about fluctuating payments so you can put any extra cash towards savings accounts and retirement funds. Otherwise, it depends on how you feel about your monthly payments.

If you think that you can get a better deal by playing against market rate in hope that you’ll end up with much lower payments at some point, then you should get an adjustable rate loan.

Talk to a financial advisor or a loan officer about your concerns before decide to get most up to date options on both types of loans.

Seriously consider low rate offers If you are thinking of getting a home within a year or two, don’t hesitate to take advantage of these offers. It is highly unlikely that mortgages will remain at these low levels for a long time. Also, even if they did remain low, things can easily swing back to days of early 90’s when only people with excellent credit could get low mortgage rates.

Get started online You can get started by getting prequalified online. The internet gives you access to many more resources than you can find locally. Look online for low mortgage rates, fill out an easy application and a lender will call you back to let you know if you are eligible for a low rate home loan.

Don’t be tempted to take first offer that comes your way. Shop around, compare and then sign your documents.