I've collected links to articles from what I consider to be some of
the more informative sites and sources on the web. Many different
aspects of fixed vs variable loans are discussed, along with
considerations to take into account in making a decision between the
In general, sites seem to lean against the variable-rate loans unless
you have a high tolerance for risk, and will probably hold the loan
for only a few years. With a only a small differential between the
interest rates on the two (7.2% vs 6.85%), I would think the arguments
against a variable rate loan become even more convincing.
As you will see, there are many factors to consider. I trust these
links will assist you in this, and will fully meet your needs.
However, if there's anything else I can do for you, just let me know
by posting a Request for Clarification.
Best of luck,
Your Choice of Mortgage: Basics and Variations
Pros and Cons
Choosing the Best Mortgage
Tutorial on Selecting Mortgage Features
A Shopper?s Guide to Bank Products and Services
Facts About ARMs, Adjustable Rate Mortgages
How to Decide if an ARM Is Right for You
Adjustable Rate Mortgages (ARM)
Reducing Your Risks
Choosing the Right Loan
Lots of information at the Mortgage Professor site:
Questions on Adjustable Rate Mortgages
What's the Best Way to Choose Between an ARM and an FRM?
When Are ARMs a Good Buy?
Again, let me know if there's anything else you need at this point.
search strategy -- Looked through bookmarked sites on mortgages for
information on fixed vs variable loans