When choosing a mortgage, you’ll likely decide between:
Fixed rate
Variable rate
Here’s the difference.
Fixed Rate Mortgage
Your interest rate stays the same for the full term.
Benefits:
Predictable payments
Stability
Protection from rising rates
Variable Rate Mortgage
Your interest rate can fluctuate with market conditions.
Benefits:
Often lower initial rates
Potential savings if rates drop
Risk:
Payments may increase if rates rise.
Which Is Better?
It depends on:
Risk tolerance
Financial stability
Market outlook
Personal comfort
There is no one-size-fits-all answer.
The Key Is Affordability
Choose a payment you can comfortably manage — even if rates change.
Disclaimer: This article is for informational purposes only.