We went with a fixed rate to make sure the rate doesn`t change for the next 5 years. We like to know the exact amount per month to budget our year. We also planing to pay extra payments and a lum sum at the end of the year to pay off the principal faster. We would like to illuminate the mortgage as soon as we can and why we are young.

Mortgage rates are the lowest in the history and will not be any lower then what it is now. In fact banks began to raise the mortgage rates and will continue to raise it in the new year. Locking your mortgage for a fixed rate will insure you with a fixed monthly payment for the next few years. I believe that 5 years fixed mortgage is the way to go in 2011.