One of the biggest questions homeowners face today is whether to stick with a variable rate or lock into a fixed mortgage. The choice comes down to balancing peace of mind with flexibility.
Fixed rates offer predictability. Your payment stays the same for the entire term, which makes budgeting easier. If you’re worried about higher rates at renewal or your household budget is already stretched, a fixed term can provide valuable stability.
Variable rates move with the market. When rates drop, your payments may fall too, saving you money. But when rates rise, your costs can climb quickly. Variable works best if you can handle some payment fluctuation and want the flexibility to switch or pay off early with fewer penalties.
Example: A family with a tight monthly budget might lean fixed for security, while a homeowner with a cushion in their cash flow may prefer variable to take advantage of potential savings.
There’s no one-size-fits-all answer. The right choice depends on your comfort with risk, your cash flow, and your timeline. A quick review with a mortgage professional can help you decide which option fits your household best.
Comments:
Post Your Comment: