Of all the loan products that are available here are a few tips (possibly opinionated tips) on what loans you should be looking at for your new home or refinance.
Security: With an unpredictable economy and job stability questionable it is time to play it safe if you havent been already. Home prices are falling and if you are in an adjustable rate loan that your fixed term is about to end now is the time to act. Your mortgage is one of your largest financial obligations and will be so taking steps to ensure your financing is safe and your loan will not change on you or place you into a situation that will leave you helpless is the right go.
Cheap money: If you are not in a fixed rate mortgage right now you should be for all the reasons I am providing today but given the current cost of borrowing money, even if you overlook all my other advice, you should look at the current interest rates right now to see if there is a benefit for you to get yourself into a better loan.
Protection Against Market Swings: As we are seeing right now the market is in a tail spin. A mortgage that has a 30 year term is a long term investment. History has proven that excellent things come those who wait. NO matter when you buy property; if you wait long enough you will make money. Be prudent in your choice to ensure you are in a loan that is fixed for the entire length of the loan term so you are protected against market swings. Even if your plot is to stay in the house for 5 years when you get your loan by getting something fixed that you can afford you have a built in safety net if things change 4 or 5 years later and you need to keep you current loan.
Paying off Your Principal Balance: If you were the habit of refinancing every few years it may be time to get into something you really like and stick with it. The simple reason. Mortgage interest is front loaded. What that means, simply place, is that you pay the majority of your interest to your mortgage lender in the first few years of your loan. Mortgage interest is not evenly distributed throughout the life of your loan. If you have a fixed rate mortgage you will not have to worry about refinancing down the line after years of frontloaded interest and you can work towards building equity and owning your home free and clear.
The reasons about are some of the major reasons to get a fixed rate mortgage. In summary, it is just a safer option given that we cannot predict the future.