What Are The Disadvantages Of A Fixed Option For Homeowner?
September 14th, 2009
What Are The Disadvantages Of A Fixed Option For Homeowner? – in our previous post we have discuss about the advantages of fixed option to homeowner. Now we will discus about the disadvantages of a fixed option. Although the ability to lock in a favorable interest rate is an advantage it can also be considered a disadvantage.
Do you want to know why? This is because homeowners who re-finance to obtain a favorable interest rate will not be able to take advantage of subsequent interest rate drops unless they re-finance again in the future. This will result in the homeowner incurring additional closing costs when they re-finance again. Well, what do you think?