Variable Rate Mortgages
Should I go with a Fixed Rate or Variable Rate?
Here are the differences:
Fixed Rate Mortgage
The mortgage rate stays the same for the whole term and the mortgage
payments are consistent during the term of the mortgage.
Variable Rate Mortgage
The mortgage rate varies with fluctuations in the bank prime rate.
As a result, mortgage payments may vary during the term of the mortgage.
A minimum term commitment is often required (usually 3 years). You may
have the option to "lock-in" the mortgage at a fixed rate
during the term.
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