With mortgage rates expected to drop over the next year, borrowers face a choice between fixed and variable-rate mortgages. Fixed-rate mortgages offer stability, with current best rates around four percent for three- or five-year terms. Variable-rate mortgages, currently around 5.5 percent, fluctuate based on the prime rate but allow borrowers to lock into a fixed rate if desired. Economists predict fixed rates may hover between three to four percent in the coming years, making a three-year fixed mortgage potentially more advantageous for renewals.
Continue to full article