Should You Choose a Fixed or Variable?

Should You Choose a Fixed or variable? tip: common indexes. The most common indexes to which the interest on adjustable-rate mortgages is pegged are the 1-year constant maturity Treasury Index, the Cost of funds index (cofi), and the London Interbank Offered Rate Index (Libor).

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When you borrow money, you may have a choice between a fixed-rate loan or a variable-rate loan. Read on to find out how to choose which one is right for you. Image source: Getty Images.

How much of a loan should you take out? How long of a term should you choose ? Should you go with a fixed rate or variable rate? What's the.

Is a fixed or variable-rate loan right for you? Ultimately only you can decide whether a fixed or a variable-rate loan is the right type of loan for your situation.

Should You Choose a Fixed or Variable? Tip: Common Indexes. The most common indexes to which the interest on adjustable-rate mortgages is pegged are the 1-Year Constant Maturity Treasury Index, the Cost of Funds Index (COFI), and the London Interbank Offered Rate Index (Libor).

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Should I Choose a Fixed or Variable Annuity? Fixed and variable annuities can be important components of your long-term savings or investment portfolio. Each type of annuity has its own particular advantages and disadvantages. And they offer the potential for tax-deferred growth.

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Should You Choose a Fixed or Variable? Tip: Common Indexes. The most common indexes to which the interest on adjustable-rate mortgages is pegged are the 1-Year Constant Maturity Treasury Index, the Cost of Funds Index (COFI), and the London Interbank Offered Rate Index (Libor).

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One of these is choosing between a fixed- or variable-interest-rate mortgage. True to its name, fixed-rate mortgage interest is fixed throughout the life of the loan. In contrast, the interest rate on a variable-interest-rate loan can change over time.