Fixed Rate Home Loans: Are They Right for You?

One of the major dilemmas of home loan borrowers is whether they should opt for fixed or adjustable rates. Finance gurus have already predicted that the minor economic discrepancies of 2015 are going to assume monstrous shape in 2016. So, there is the obvious fear of inflation looming large in the horizon. What will happen in case of inflation? Job loss? Pay cuts? What happens if the rates go up at the time of inflation? While the present economic crunch is one of the foremost reasons why a section of borrowers is apprehensive of opting for variable loans, the news of the banks cutting the rates of interest almost every other day, has kept a few borrowers hooked to loans with variable rates.

Home loans are long term commitments. A loan with fixed rate of interest offers you a sense of certainty though there is the obvious possibility of not being able to take advantage of rate dips. So, as a borrower you would definitely like to educate yourself about the benefits of home loans with fixed rates. Read on in order to explore.

Situations when fixed rate home loans turn out to be beneficial for borrowers

Fixed rate home loans are ideal for those who are just comfortable with the current EMI they have to pay. If your current EMI accounts for less than 40% of your monthly income you will (most likely) not find it difficult to repay your loan. If you are not sure whether your current fiscal situation will allow you to save enough to accommodate possible rate hikes in future then you should stick to your fixed rate home loan.

Fixed rate home loans are an ideal choice for borrowers who have a lot of other financial commitments- because they are not likely to be able to afford future spikes in rates.

It is not really a good idea to settle for a home loan with variable rates if you’re not planning to prepay the home loan. There are some borrowers who choose to prepay the loan when the rates go down.

Are you well adept at reading future fiscal possibilities from the present financial situation? Are you someone who religiously follows financial news and are able to come up with near-accurate predictions of the consequences? Do you think that the rates will go up in the near future? If yes, then you obviously should not opt for variable rate home loans. Should you settle for them if you think that the rates are going to decline shortly? Yes, but only when you think that the rate dip stays for a fairly long time and not shoot up drastically just after one or two months of its introduction.

Things to consider while obtaining fixed rate interest

Irrespective of whether you’re settling for fixed or variable rate home loan, you should always be prudent enough to check the credentials of the lender thoroughly before getting them on board.

Spruced Up: It’s Already March! Edition

Hey y’all,

Here’s another week’s worth of my favorite posts:

Sam at Financial Samurai wrote about feeling at home when on vacation. I love thinking about anything related to vacations, and this post just made me want to go on another trip even sooner!

Krystal at Give Me Back My Five Bucks has written a lot of great posts about her travels in Europe. Her lastest is on her trip to Munich, which sounds amazing!

Tom posted the Leaving Work Behind Top 100 blogs. It’s a great list to check out no matter if you want to quit your job or not.

Andrea at So Over Debt unveiled a new site. Check it out here on her post about Curiosity Killed the Blog.

I Am 1 Percent had another great post, this time on the 7 best financial decisions. I’m really enjoying this site so far, and a lot of others are saying the same.

Money Cone posted about choosing a 30-year mortgage over the 15-year. I’m still a happy renter myself, but I enjoyed this topic.

And a few carnivals for ya:
Carnival of Money Pros at Money Pros
Yakezie Carnival at Not Made of Money
Carnival of Financial Camaraderie at My University Money
Best of Money at Squirrelers
Festival of Frugality at Debt Free by Thirty
Canadian Finance Carnival at Canadian Finance Blog
Carnival of Wealth at Control Your Cash
Carnival of Retirement at Money Reasons
Financial Carnival for Young Adults at 20’s Finances
Carnival of Money Pros at Passive Income to Retire
Yakezie Carnival at Miss Wallstreet
Carnival of Financial Camaraderie at Canadian Finance Blog
Totally Money at The Frugal Toad
Canadian Finance Carnival at Canadian Finance Blog
Carnival of Financial Planning at Personal Finance by the Book
Financial Carnival for Young Adults at 20’s Finances
Carnival of MoneyPros at Sweating The Big Stuff
Carnival of Retirement at Money Q & A
Yakezie Carnival at 20 and Engaged
Canadian Finance Carnival at Canadian Finance Blog
Totally Money Blog Carnival at Skint In The City
Financial Carnival for Young Adults at 20’s Finances
Carnival of Financial Planning at Skilled Investor

Carnival of Retirement at The Frugal Toad
Yakezie Carnival at Tackling Our Debt
Carnival of MoneyPros at Money Reasons
Totally Money Blog Carnival at Sterling Effort
Financial Carnival for Young Adults at 20s Finances
Have a great week, everyone!

Spruced Up: Superbowl Bound, Baby Edition

WE’RE GOING TO THE SUPERBOWL!! Already looking forward to a rematch between the Pats and the Giants. Go Pats!

Here’s a few posts to celebrate with:

Tom at Leaving Work Behind wrote about progress on his authority site. If you’re building niche sites (or want to be), check out Tom’s site and his Keyword Research Guide, too.

Hunter at Financially Consumed polled about the price of gas in 2012. I think we’re in for a big price increase.

Newlyweds on a Budget posted about how to make money with a blog (and I followed some of the advice!)

Caleb at Pocked Changed had a fantastic list of quick actions to avoid unemployment forever.

Carrie really grossed me out with weird and gross ways to save money (it definitely doesn’t disappoint)

Miss T at Prairie Eco-Thrifter listed the top 20 foods to increase brain power. I’m big into healthy eating, and I was glad to see I’m already eating a lot of things on this list.

Money Crashers had a very in-depth post on Exchange Traded Funds (ETFs), so check that out if you aren’t familiar with investing in that type of fund.

My post was included in the WTF Edition of the Carnival of Financial Camaraderie hosted at Financial Success for Young Adults

Carnival of Wealth at Control Your Cash included my 2012 goals post as well.

You can also find me in:

Yakezie Carnival at Little House in the Valley
Totally Money at Passive Income to Retire
Festival of Frugality at Squirrelers
Carnival of Financial Planning at Credit Cards Canada
Carnival of Retirement at 20’s Finances

Yakezie Carnival at The Amateur Financier
Carnival of Financial Camaraderie at My University Money
Totally Money at Canadian Personal Finance
Canadian Finance Carnival at Canadian Finance Blog
Carnival of Financial Planning at The Amateur Financier
Carnival of Retirement at Retire by 40

Yakezie Carnival at Steadfast Finances
Carnival of Financial Camaraderie at Newlyweds on a Budget
Totally Money at 20’s Finances
Canadian Finance Carnival at Canadian Finance Blog
Carnival of Wealth at Control Your Cash
Carnival of Financial Planning at Skilled Investor Blog
Carnival of Retirement at Financial Success for Young Adults

Yakezie Carnival at Financial Success for Young Adults
Carnival of Financial Camaraderie at Thirty Six Months
Best of Money at Frugal Confessions
Canadian Finance Carnival at Canadian Finance Blog
Carnival of Retirement at My Personal Finance Journey

Yakezie Carnival at 101 Centavos
Carnival of Financial Camaraderie at My University Money
Best of Money at No Debt MBA
Totally Money at Faith Money Values
Festival of Frugality at Paid Twice
Carnival of Wealth at Control Your Cash
Carnival of Financial Planning at 20’s Finances
Carnival of Retirement at My Retirement Blog


This week, my beer choice is Dogfishhead 60 Minute IPA. Why? I brewed 5 gallons of my own version, and I’ve been enjoying it all week!

$ $ $ $

Spruced Up: Playoffs Edition

Now that we’re post-holidays, I’m glad I can sit back, relax, and enjoy some football! (while reading my favorite PF posts, of course!) Here are a few on my favorites from the week:

Andrea at Nickel by Nickel is debt free for all but her house! Congratulations!

Jana at Daily Money Shot launched “Bloggers Give Back,” which I’m happy to support and participate in

Retire By 40 posted a comparison of net worth versus the S&P 500.

PK at DQYDJ posted a visualization of IRS revenues. Love the interactiveness!

Prairie Eco-Thrifter featured a post about filling your gas tank and emptying your wallet.

Sam at Financial Samurai gave us his predictions for 2012.

Hunter at Financially Consumed told us about Failure Club, which teaches us why we shouldn’t be afraid to fail.

Money Cone shared some wisdom on light bulbs (important with the extinction of incandescent bulbs soon).

JT at Money Mamba gave us some surprising stats on store returns.

Carrie at Careful Cents wrote about about avoiding overdraft fees (something I’ve learned more about recently!)

KrantCents scared us with some landlord nightmares (ahhhh!)

John at Married with Debt wrote about selling his car for funding an emergency.

My beer pick of the week: River Horse Oatmeal Milk Stout I’m really enjoying the stouts right now, so be sure to check this one out.

$ $ $ $

Spruced Up: Last Minute Holiday Shopping Edition

I’m starting to feel the pressure of finishing holiday shopping! Yet I’ve barely even started! I guess I better get going. I found this post on Yahoo this week with free shipping deadlines. I better hit these or I’m going to have to brave the mall (which I really don’t want to do).

Here are my favorites for the week:

Money Talks – Did a 3 Hour Sales Pitch Get Me to Open My Wallet?

Daily Money Shot- My Job is Depressing. And I want to Leave.

Frugal Confessions – Making a Little Extra Cash Online

Life and My Finances – Day Job or Full Time Blogger?

Enemy of Debt – Just Say No to Inflatable Santas

Money Crush – A Different Kind of Holiday Gift Guide

Money Mamba – Corporate Profits: One Chart, Five Thoughts

This week’s beer pick: Shipyard’s Blue Fin Stout. Truly one of my favorite stouts out there. It’s nice and thick with just a bit of a chocolate coffee flavor.  It’s a little tough to find (I can’t seem to get it around here in CT), but I always enjoy it when I’m visiting their brewery up in Portland, Maine.

Have a great week, everyone!

Spruced Up: Countdown to Christmas Edition

Here’s a shoutout to my favorites of the week:

So Over Debt – It’s Official: I’m a Spendaholic in Remission

Frugal Confessions – An Argument for Holding Out on Purchasing the Latest and Greatest Gadgets

Budgeting in the Fun Stuff – Essential Tips for Hiring the Right CPA

Money Talks – Are Credit Unions Better Than Big Banks?

Minting Nickels – Ebay in Black and White

Wealth Informatics – Do A Financial Self Appraisal

Money Crush – Seven Businesses You Can Start for $100 or Less

Afford Anything – Great Expectations Lead to Victories

Financially Consumed – Value Added Landlord

Life and My Finances – What to Do in a Hiring Freeze

Prairie Eco-Thrifter – Home Improvements That Pay You Back

Money Mamba – Upsides of Rampant American Consumerism

Money Cone – Switching from a Bank to a Credit Union. Is it Worth it?

Retire By 40 – 4-Plex First 3 Months Report

Personal Finance Whiz – How To Make Extra Money From Home With a Side Job

Thousandaire – Is a Small Business the Key to Being Wealthy?

Budgets Are Sexy – U.S. Savings Rates vs the World

Beer pick of the week: Gonna go with the ol’ standby for winter and pick Sam Adams Winter Lager. I remember this was one of the first beers I tried 5 years back, and I could barely drink it at first (or any beer, for that matter). Now it’s one of my favorites!

See ya next week!

Spruced Up: ‘Seems About Time’ Edition

I haven’t posted a roundup lately, but it seemed like a good time to do that now after all the excitement at the Financial Bloggers Conference. This isn’t a recap of that (I didn’t write one so everyone else covered it so well), but here’s some of my favorite recent posts, from both old and new friends:

Hunter @ Financially Consumed – “Ten Takeaways – Financial Blogger Conference

Crystal @  Budgeting in the Fun Stuff – “Balancing My Checkbook – Too Loaded to Care?

Ashley @ Money Talks – “Self Employment Income Is Not Less Reliable Than Employment Income

Caleb @ Pocked Changed – “How to REALLY Laugh in the Face of Fear and Quit Living a Boring Life

Suba @Wealth Informatics- “Should you Buy or Rent? Calculator + Inforgraphics

Krystal @ Give Me Back My Five Bucks – “Creating a Schedule that Works

MC @ Money Cone- “Using PayPal to Send Money? The Deal Just Got Sweeter!

Brad @ Enemy of Debt – “What Are You Biggest Challenges With Paying Off Debt

Have a great week!

Spruced Up: Saving, Dreaming, and Living

Welcome to my round-up of the best in the pf realm. I’ve got some exciting news to share:

I’m now listed on Money Crasher’s Top PF blogs! I’m currently ranked at #284 (see the box on the right sidebar), and this is updated regularly. I’m excited to see how I can make this grow and how I measure up with the other blogs up there. If you’d like to help me grow even more, I’d love if you’d subscribe to my RSS feed. Thanks for being a supporter!

Now for my favorite posts:

“Online Education Advantage” -Financially Consumed

“Cash a Check Through Your Smart Phone” -Money Cone

“My First Craigslist Experience” – Money Talks

“Dream as if you’ll live forever, Live as if you’ll die today.” – Budgets Are Sexy

“My New Insurance Costs” -Budgeting In The Fun Stuff

“How to Save on a Cell Phone Plan with Secret No-Contract Deals”– Get Rich Slowly

“Learning to Give Up the Rate Race” – Wealth Informatics

Just for the hell of it, I’ll throw in this song, since I’ve been loving it, t0o:

That’s it for now. I’m on vacation for the second half of August, so I’ll be checking in when I can. If you don’t hear much from me, enjoy the rest of summer!

Spruced Up: My Favs Including Financial Struggle and Warren Buffett

Hey all, I’m writing to you from WordCamp Boston right now. I had a blast yesterday learning some new tricks on WordPress, and hanging out with cool people, too.

Here are my favorites for the week:

The Value of Financial Struggle from Pocket Changed

Will Your Charge Card Effect Your FICO Score? from Budgeting in the Fun Stuff

How to Think Like Warren Buffet from Gen Y Wealth

The Library Card is in Your Future by Financially Consumed

Extended Warranty – Worth it or Not? from Wealth Informatics

Dealing With the Electric Bill form Money Talks

Have a great week!

Spruced Up – Best of PF: Lawyers, Cards, anddd… SEO

Here’s some of my favorite posts of the week (damn, I read a lot of blogs). I’ve got a non-pf link in there from Sean Ogle about SEO, too (and this post title is probably bad for SEO, actually). Click and enjoy!

Never Say “I Can’t Afford it” Again – Money Talks

4 Thrifty Way to Hire a Lawyer – Financially Consumed

6 Lessons Learned from the Recession – Budgets Are Sexy

The Best SEO Strategy for Your New Blog – Sean Ogle/Location 180

Every Purchase is a Trade-Off – Get Rich Slowly

10 Reason I’m Cancelling My Credit Cards – Smart Money via Yahoo Finance

Applying to MBA Programs – Step 4 – Money in the 20s

See ya next week!

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