The Difference Between Fixed and Adjustable


If you are currently in the market for a Brookfield mortgage, you may be curious about what mortgage options are available to you.

 

As a qualified mortgage professional, I am proud to offer my clients a variety of mortgage products and services, ranging from different types of loans and competitive rates to renewing and refinancing. Of these, most people are concerned more with their mortgage rate than everything else.

This makes sense because your mortgage rate will determine the amount of interest you will be paying on your loan. The higher your rate, the more interest you will end up paying over the life of your mortgage.

Mortgage rates can vary based on the term, or length, of the loan and whether the rate is fixed or adjustable. The main difference between fixed and adjustable mortgage rates is that a fixed rate will remain the same for the entire life of the loan, while an adjustable rate will fluctuate over time.

With a fixed rate, you are aware of exactly what your monthly payment will be, every month, until the mortgage loan is paid in full, because your rate will not change. This consistency can help to better budget monthly expenses and plan for the future.

Contrarily, an adjustable rate can, and will, change over time. This is not necessarily a bad thing, but it does involve more risk than a fixed rate. With an adjustable rate, the borrower is usually given a lowered initial rate that will be paid for a set amount of time before the adjustments begin. Once this happens, the interest rate will fluctuate based on a pre-set index that is established based on economic trends.

This means that if you have an adjustable rate for your mortgage, you have the potential for your interest rate to increase, decrease or remain the same on a monthly basis. If the time is right, you could potentially end up with a much lower mortgage rate and pay less in the end than you would with a fixed rate.

It is always best to consult with a Brookfield mortgage professional, like myself, before making any decisions about your mortgage terms or interest rate. I have the experience needed to present you with the best financing options for your situation.

If you have any questions about the difference between fixed and adjustable rate mortgages or would like to begin your mortgage process, please give me a call today at (262) 785-1363!

Source: https://en.wikipedia.org/wiki/Adjustable-rate_mortgage

Source: https://en.wikipedia.org/wiki/Fixed-rate_mortgage


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