Variable Vs. Fixed - What Is The Right Answer For You?Do you have a home in Mississauga, Ontario? If you do, you should know about fixed vs. variable mortgage rates to help you decide which type is the best answer for you.
Both of these types of mortgages have their advantages and their disadvantages. The best way to learn about all of the advantages and disadvantages is to do your homework online and to talk to a mortgage professional.
The mortgage professional can help you make the best decision possible because they have all the knowledge and information needed to help you make the smart choice for you. Trying to make the decision on your own is possible, but talking to a professional is still a good idea to get the type you want.
To help you get started making a smart choice you need to know some of the different advantages and disadvantages for each of these. This will help you understand the different types better which is crucial to making your decision.
Advantages of fixed:
1. When you get a fixed rate mortgage you will have security knowing what your payments will be each month until the end of the fixed period. This is a big advantage for a lot of people because it gives you the change to plan your financial future easier.
2. Because your payments will not increase since you are at a fixed rate for a certain period of time if interest rates were to increase then you will be safe.
Disadvantages of fixed:
1. If internet rates go down you can not take advantage of this because you are on a fixed rate for a certain amount of time.
2. In order to get the fixed rate you want You will have to pay a higher interest rate than the standard variable rate.
Advantages of variable:
1. When you have a variable rate loan it will follow the base interest rates. If the rates are low then this is a big advantage for you because depending on the lender you have it can make your base rates fall and this will help to reduce your monthly payments.
Disadvantages of variable:
1. Since your rates follow the base rates if they should rise then this means that your rates will also rise and in turn your monthly payments will be higher also.
Now that you know this important information you will have a much easier time of making your decision. Just make sure you take your time and do your homework and be smart by talking to a mortgage professional.
This is the smart way to decide what type would be best for you, fixed vs. variable. Just don't rush your decision because making the wrong choice can cause you problems in the future that you don't need.
About the Author:
Did you enjoy this article by Paul Mangion on variable vs. fixed rate mortgages? He is a mortgage broker for The Mortgage Centre in Mississauga, Ontario. They offer seamless solutions to all your mortgage needs. For the best mortgage rates in visit his site today. www.gtamortgagematters.com/