Both fixed and variable mortgages have their own advantages and disadvantages.
Advantages of a Variable Rate Mortgage:
- When rates go down you benefit from that immediately and will see your payment drop – this means more towards the principal and less interest so your mortgage is paid off faster!
- Historically variable mortgages have been significantly lower in rate than fixed mortgages
- Variable rates off you the freedom to convert at any time to a fixed rate mortgages especially when you see rates rising at no cost – your Jencor Mortgage advisor will keep you informed
Advantages of a Fixed Term Mortgage:
- The fixed rate offers the security of locking in your rate
- You may prefer peace of mind – the same mortgage payment every month with a guarantee not to change for the term
- You will know exactly how much principle and interest you are paying with each payment