When it comes down to choosing the right mortgage you need to know that both fixed and variable mortgages are both good options. These days, however, with the interest rate being so low, most people are choosing a fixed rate mortgage since it offers the security that you won't find with a variable rate.It wasn't too long ago when the variable rate option was a better choice for people that preferred to take the risk to see if mortgage rates would go down.
One of the things to keep in mind when you're looking at the differences between a fixed and a variable rate mortgage is your ultimate goal. While some people plan on making their payments monthly over the entire mortgage term, others want to pay off their mortgages as quickly as possible to lessen their debt load. In either of these situations a variable or a fixed rate mortgage would work out best. It's a good idea to talk to your mortgage broker and let him know exactly what your mortgage goals are for the future so that the numbers can be crunched to find your best option.
When you work with a good mortgage broker he will sit you down and show you the different scenarios that could play out depending on the rise or fall of interest rates in the future. Even a rise of 1% in the not-too-distant future can drastically change how much you'll end up paying for your house down the road.
You’ll want to find out exactly how much you’ll have to end up paying per month if interest rates rise as they're expected to. Your mortgage broker can show you the exact figures based on different house prices for each type of mortgage. He will also be able to recommend one product over another based on past experience, future trends and your home ownership financial goals.
The last thing you need to remember is that this is your mortgage. You have to take your own personal thoughts and emotions into account when making a final decision. If you're not one that will deal well with fluctuations in the interest rate, for example, getting a variable rate mortgage may not be the wisest choice.