If you want my opinion, here it is. Get four offers from different lenders, then negotiate your best deal.

No doubt about it, interest rates are great right now. In fact, they are as good as I have ever seen them and I have been in this business for more than 15 years. So there are many people out there who are about to jump in the mortgage waters. Many of whom may be tempted by even cheaper adjustable rate mortgages instead of sticking with old reliable — Fixed Rate mortgage.

It is true, all things being equal, you can get an adjustable which is fixed for 5 years for about 3/8% less than a fixed rate note. On a $300,000 Mortgage, that is a pretty good monthly savings. Over five years time, you can build up a pretty good piggiy bank with the difference. But is it so good that you should trade the security of a fixed rate mortgage for it?

Maybe not. The easy answer is that if you are only staying in the home for a few years or so, then you should defiantly take the lower rate. True. But ten years ago, my wife and I thought we would be moving out of our home in the near future and ten years and two kids later, we are still there. Life happens and even the best laid plans change.

Also, even though we all hope and pray that the economy and the housing market improve, who can tell for certain. I simply think that with the way things are going, I would rater have the low rate locked in forever