Comment: As low as interest rates are

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As low as interest rates are

I don't see any good reason to go with a variable rate mortgage. If interest rates were artificially high instead of low then you would consider a variable. Although I wouldn't be surprised if they have some bogus up front fees now on fixed rate so that variable will look better. I mean just how much lower can mortgage rates go? But with just a little uptick in the rate you pay a lot more on a 30 year mortgage.

I have never been one for variable rate loans whether mortgage or credit card. I like to know what my bills are and the idea that my payment could go up tremendously over night is unacceptable. I was forced to cancel my credit card because they tried to change my rate from 7.99 fixed to 12.99 variable and I have an 820 credit score. Pissed me off something fierce. This was after we were already ripped off with the bank bailout. And I had that card for years. Grrrrrr. So much for all that honest work building up good credit. I didn't carry a balance over so the interest rate didn't really affect my bill but it was the principle of the thing so I told them to stick there credit card.

Like the guy said below, if your friend can live on the cheap for a few years and save his/her money so he/she doesn't have to enslave themselves to the bank then go for it. Otherwise go with a fixed.