A Fixed Rate Mortgage: Experience Peace-of-Mind with a Closed Rate
Secure Your Rate with this Mortgage: Lock-In Your Interest Rate Today
A fixed rate mortgage is a conventional type of mortgage where the interest rate remains constant throughout the loan’s duration. Unlike a variable rate mortgage that may fluctuate, a fixed, or closed, mortgage rate is securely “locked in.”
Opting for a fixed mortgage rate can offer you peace-of-mind, as your payments will remain consistent over the loan term. This type of mortgage is an excellent choice if you prefer stability and are somewhat risk-averse with investments, or if you anticipate an increase in mortgage rates in the future.
I am highly experienced with brokering fixed rate mortgages in Alberta, Canada.
Open vs. Closed Mortgage: Finding the Best Option for You
When contemplating a mortgage strategy, numerous options come into play, including the choice between closed and variable rates.
A fixed-rate mortgage is commonly preferred by first-time buyers and risk-averse individuals. It provides stability as the interest rate remains constant over the loan term.
On the other hand, a variable rate mortgage is often favored by more established buyers who are open to the potential fluctuations of a variable interest rate, seeking potential cost savings or benefits in certain market conditions.
What to expect with a fixed rate mortgage:
- Each month, your payments will remain unchanged.
- When opting for a fixed rate mortgage, you may encounter a slightly higher interest rate in comparison to a variable rate mortgage.
- With a variable rate mortgage, if the Prime Rate increases, you can save on interest costs. However, if the Prime Rate decreases, you may lose the potential savings.
What to expect with a variable rate mortgage:
- Your payments will vary based on fluctuations in the Prime Rate.
- When opting for a variable rate mortgage, you can anticipate a slightly lower interest rate compared to a fixed rate mortgage.
- With a variable rate mortgage, your payments will increase if the Prime Rate goes up, but you will save money if the Prime Rate drops.
The good news is that MLJ Mortgages offers a variety of customized loans and traditional mortgages. I have experience with Canadian mortgages and can find the right solution for you.
Simply fill out the form, and get the process started. No matter your goals, I am here to help.
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