Choosing between a fixed or variable mortgage rate is crucial when buying a home, as it affects your financial situation and monthly payments. Fixed-rate mortgages offer stability and predictability, while variable-rate mortgages fluctuate with the lender’s prime rate. Each option has its pros and cons, including potential cost savings with variable rates and the protection from rate hikes with fixed rates. As interest rates are expected to decrease in 2025, variable mortgages may regain popularity, but personal financial goals and risk tolerance should guide the decision.
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