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Finding the Best Mortgage Rates can be a challenge unless you already have established volume based relationships with institutions. Our considerable volume allows us to get wholesale mortgage rates for our clients. It also allows us to garner mortgages with flexible terms and conditions which can dramatically impact the ability to pay a mortgage down quickly.
Take a look at the posted mortgage rates currently offered by our lenders and if you are interested in learning more click contact us to send us a quick email. We will get back to you in a few short hours and can walk you through the steps in securing your next mortgage.
Mortgage Types – Fixed Versus Variable
When it comes to mortgages there are essentially two primary options to consider a choice between a fixed and variable mortgage. Fixed mortgages are for those people who want a stable monthly payment that won’t change. The interest rate and payment amount remains stable over the course of the mortgage term. Typically, a fixed mortgage has a higher interest rate than variable. However there is no worry about the rate or payment changing during the term. Variable mortgage rates have typically a lower interest rate than fixed and it is this gap in interest rate that allows people who have this type of mortgage to realize additional savings. The interest rate however can change which means that the mortgage payments can fluctuate.
Fixed Mortgage Rates
Mortgages with fixed rates tend to appeal to first time home buyers who are budget conscious and do not want their monthly mortgage payment to change. Fixed rate mortgages also appeal to those homeowners who are looking for monthly expense stability and that regardless of financial market conditions their interest rate will not change during the term of their mortgage. Fixed mortgages are usually offered with terms ranging from 1 to 10 years. The 5-year fixed mortgage is the most popular as it provides the security to the borrower in the short-term without locking them out of potential rate savings in the long-term.
Variable Mortgage Rates
Mortgages with a variable interest rate can change with great frequency. This variable rate is calculated based on the prime rate which at the time of writing this article stands at 2.7%. The variable rate can be as much as one percentage point below or one percentage point above prime. The variance of this rate to prime depends on many factors and market conditions and is difficult to predict which means there is risk associated with the rate changing. A historical look at the variable mortgage rates is beneficial versus fixed rates however homeowners need to be careful in choosing the lower rate associated with this type of mortgage as the risk can increase over time.