Mortgage Differences: Fixed Or Variable Rate
| Money : Borrowing One of the main aspects of a mortgage you will need to consider is whether to get a fixed or variable rate mortgage. But what exactly is the difference between them - and what are the pros and cons of a fixed and variable rate mortgage? Well, a fixed rate mortgage is the more traditional product. It is where you have a fixed interest rate to pay over the life of the loan - typically 20 or 25 year period. Your monthly payment for interest doesn't change. However, with a variable rate - or adjustable rate - mortgage, the interest is not fixed. You will tend to start with a lower interest rate and hence payments, but you will not have certainty as the payments fluctuate with time with the rise and fall of interest rates.
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