Thank you for visiting www.GreatMortgageAdvice.com By Cecilia Ramos
Choosing a Fixed rate Mortgage
A fixed rate mortgage has an interest rate that does not change during the entire mortgage term.
How A fixed Rate Mortgage benefits you:
You can take advantage of the same interest rate for the entire term with a regular payment that stays the same.
You will have the security of knowing exactly how much your payments are and how much of your mortgage will be paid off at the end of your term.
Choosing a Variable Rate Mortgage
An interest rate that will fluctuate in accordance with the prevailing market prime rate during the mortgage term.
How a Variable Rate Mortgage benefits you:
Historically, variable rates have been lower than fixed rates and could save you more money.
If rates go down, a larger portion of your payment goes towards principal, helping you pay off your mortgage faster. Your regular payment stays the same even if rates change
Variable Rate mortgage are based on the Canadian Governments Prime Rate. Most lenders will offer a rate that is either Prime Minus or Prime Plus. This means that the mortgage rate may be either lower than the prime lending rate or slightly higher.
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Mortgage Agent Lic. M008002669
Argentum Mortgage and Finance 11892