Ride The Line . . . because getting a fixed-rate loan might not be the best fix.

Q:With the recent drop in interest rates, is now a good time torefinance my floating-rate loan?

A:Probably not. It's possible to get a fixed-rate loan, but notall lenders offer that option. If yours does, the initial rate onthe fixed-rate loan will likely be higher than that on thefloating-rate loan. Also, to avoid keeping their money tied up forlong periods of time, lenders usually make fixed-rate loans atshorter terms than when they float with the current rates.

Obviously, most borrowers would prefer knowing they have a fixedpayment for a determined number of years to guessing what theirpayment might be every month. In a falling-rate environment,however, riding the line downward is probably the more sensibleoption. Once the rates level off, then go talk to your lender. Andif he or she agrees to fix the rate, make sure you can deal withthe possibility of a higher initial rate.