This article will help you more than any broker will out there. The first step towards buying your new home is consulting with a loan officer who will determine whether you qualify for a mortgage or not. The loan officer should also tell you about mortgage rates, and the terms lenders will extend to you upon qualification for some credit.
After one has found out the exact rates for both fixed and variable mortgage rates, people tend to get confused on what to settle on. It is indeed confusing because, at the beginning of the repayment plan, the variable rates may be lower and more lucrative, while the fixed rates may seem safe because of certainty. However, it would be prudent to take the fixed over variable rates. Here is why;
Apart from the certainty that comes with the fixed mortgage rates, it will also allow you to budget and plan because you already know the amount you owe firsthand. Furthermore, the rates will never go up even when the market rates hike, unlike the variable rates, which would reduce or increase depending on the market rates. Variables mortgage rates could end up doubling up in the long run.
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