Fixed, Variable & Adjustable Interest Rates
Fixed, Variable & Adjustable Interest Rates
Mortgage interest rates are either fixed, variable or adjustable.
A fixed rate is locked in for the term. If you are a first time home buyer, a fixed rate will provide you with the security and peace of mind knowing that your rate and your mortgage payment will not change over the period of your term. If having the same monthly payment every month is important to you, then you will want a fixed rate mortgage.
A variable rate fluctuates based on the market conditions while the mortgage payment remains unchanged. Variable rate mortgages are usually offered to clients with a solid credit rating also meeting specific qualifications. You also have the ability to convert over to a fixed term product at any time.
With an adjustable rate, both the interest rate and the mortgage payment vary based on the lenders prime interest rate. If you are able to accommodate a higher mortgage payment should interest rates increase, and you are not concerned with a fluctuation in your payment then you will want to discuss the benefits of the adjustable rate.
Similar to the variable interest rate, adjustable rate mortgages are usually offered to clients with a solid credit rating and meeting specific qualifications. You also have the ability to convert over to a fixed term product at any time.
Historically a variable/adjustable rate provides you with a lower average rate on your mortgage therefore will save you in interest costs.
Work with your mortgage specialist to ensure you have the right fit for your needs.
Wendy Goodsir
Mortgage Specialist
MortgageBrokers.com
O: 403-278-4783
C: 403-540-6244
F: 403-212-0123
