Answer:
One of the risk of a variable rate loan is hat the interest rate will increase and therefore the money you have borrower monthly payment will increase to a point that you many not be able to repay. which can result in late fees, and even foreclosure and in some cases the lost of property if rate get too high and you decide to convert to a fixed-rate loan, be prepared to pay a conversion fee.
First answer by Rose Allen. Last edit by Rose Allen. Contributor trust: 0 [recommend contributor recommended]. Question popularity: 5 [recommend question].