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I think if u like to judge it is good or bad this is depend on which point of view u r talking about. cause from client opinion it is better adjustable rate as once he paid any installment of loan his intrest will be deducted also . but from establishment opinion it is better fixed rate cause the interst value will be calaculated on total amount of loan Regardless of what will client pay in future.
Fixed Rate of Interest is Good for the Borrowers and same time bankers may some time may loss due to if depoist rate of interest increases.
Adjustable rate of Interest is profit and safe to Bankers, rate of Interest is various in deposit.
When choosing a mortgage, you need to consider a wide range of personal factors and balance them with the economic realities of ever changing market place.
Fixed-Rate Mortgages- A fixed-rate mortgage charges a set rate of interest that does not change throughout the life of the loan. Although the amount of principal and interest paid each month varies from payment to payment, the total payment remains the same, which makes budgeting easy for homeowners.
Advantage
Fixed-rate loan is that the borrower is protected from sudden and potentially significant increases in monthly mortgage payments if interest rates rise. Fixed-rate mortgages are easy to understand and vary little from lender to lender.
Disadvantage
Fixed-rate mortgages is that when interest rates are high, qualifying for a loan is more difficult because the payments are less affordable.
Adjustable-Rate Mortgages- The interest rate for an adjustable-rate mortgage varies over time. The initial interest rate on an ARM is set below the market rate on a comparable fixed-rate loan, and then the rate rises as time goes on. If the ARM is held long enough, the interest rate will surpass the going rate for fixed-rate loans.
Advantage:
ARMs are attractive because they offer low initial payments, enable the borrower to qualify for a larger loan and in a falling interest rate environment, allow the borrower to enjoy lower interest rates (and lower mortgage payments) without the need to refinance.
Disadvantage:
With an ARM, your monthly payment may change frequently over the life of the loan. And if you take on a large loan, you could be in trouble when interest rates rise - some ARMs are structured so that interest rates can nearly double in just a few years.
