The decision between a fixed vs variable rate is not always an easy one.
A fixed-rate mortgage provides stability, as your interest rate remains constant throughout the loan term. This means your monthly payments won’t change, making it easier to budget and plan for the long term. They work well for those planning to stay in their home for several years.
In contrast, a variable-rate mortgage has an interest rate that can fluctuate based on market conditions. This means your payments may go up or down over time. Variable rates often start lower than fixed rates, offering the potential for savings. However, they carry the risk of increasing rates, which could lead to higher payments in the future.Variable rates may appeal to those comfortable with some risk or who plan to sell or refinance in the shorter term.
