FIXED RATE MORTGAGE
A fixed rate mortgage is best for you if you enjoy the security of a rate that is guaranteed not to change for the term of the mortgage and are willing to pay a slightly higher interest rate for that security. You prefer the peace of mind of predictable mortgage payments and amortization that are guaranteed not to change during the term of your mortgage.
VARIABLE RATE MORTGAGE
A variable rate mortgage is best for you if you are comfortable with rate fluctuations to gain possible long term interest savings. You have the flexibility to accept possible increases in your amortization should the interest rate increase. Regular mortgage payments are set for the term, even though the interest rates may fluctuate during that time. Variable rates offer you the freedom to convert any time to a fixed rate mortgage with a term that’s at least as long as the one remaining on the mortgage.
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