Fixed Or Floating Rate?


LoanSafe Member
May 12, 2017
Hi, I'm currently preparing to move to California from Europe for work. I made some research to buy property and your site's been very useful, thank you. Could you please advise about mortgage rates, is it reasonable now to take a loan with floating rates? Here it is explained that they are more risky. If so, is it wise to do it now? I'd like to stick to floating rate only if it is safe and really worth doing

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
Southern California

Here in the U.S., they call a floating rate and adjustable rate mortgage. This just means that the rate adjusts with the markets. Normally they are fixed for 3-10 years and because of this, they can be more risky but you will often get a lower rate to begin with.

So the catch is that you get a lower rate, but it is only fixed for a certain number of years and then it adjusts which can make your rates go up depending on what the LIBOR.

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
San Diego, California
ARM's are becoming increasingly popular nowadays as many people refinance every 3 years. With the market that we're in we really don't know what the interest rates will be in the next 5 years. It's definitely a gamble but may be worth it depending on what your goals are with the home that you're purchasing.
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