Times they are a-changing and these days we all have to become our own mortgage experts. So, is this a good time for a fixed rate mortgage? Today's market seems to be crying out for would-be home owners to negotiate for only one type of mortgage, and the advice must be clear: finance with fixed-rate mortgages.

In this financial climate, why would anyone do anything else, mortgage interest rates are at their lowest levels since May, in fact we're looking at rates last seen in the 1960s. Why such low mortgage interest rates? Why such low mortgage rates in the face of large balance-of-payments debts, rising oil costs, huge federal deficits, chaos on Wall Street and foreclosures in every state? This low rate is mystifying many financial analysts, especially as it is coupled with record high foreclosures.

Loan applications are up nearly 20% compared with last year, according to a report from the Mortgage Bankers Association. Could this be investors snapping up the foreclosures, or regular buyers taking advantage of the low rates? This is a puzzle, but prospective buyers just have to jump on the bandwagon, ours is not to reason why! Especially if we need a mortgage! So what about a fixed rate mortgage, what are the snags?

The obvious one that has to be addressed is that, paradoxically, mortgage rates have been spiraling downwards. Once we are locked into a fixed rate mortgage, we can no longer take advantage of a (possibly) dropping interest rate.

Therefore the big snag is that we could end up paying more than we need to. But the big advantage is that we will not suddenly have to accept a jump in rates that will mean that our repayments have zoomed out of our range.

The temptation therefore, is to take a variable mortgage rate and see if it goes down further. If you go this route, make sure that you can organize a quick change to a fixed mortgage and read the small print.

Sometimes the downside about a variable mortgage with a change option is this: the fixed rate that you can switch to can be a higher rate than a straight fixed rate mortgage.

As with many things in life, the type of mortgage we choose will probably reflect our personality. If we are optimists, or if we have a daring side to our nature, we may wait before we lock in.

If we are not the gambling type, and we really need to know that we can live within our budget in order to have peace of mind, then we will probably choose to lock in straightaway.