Are you confused about mortgage rates and what to commit to? With the help of the Lang Team of mortgage specialists, we get an expert opinion on the differences between a Fixed Rate Mortgage and Variable Rate Mortgage.
Joanna Lang presents a solid case for the Variable Rate option. With historical averages that are lower than the fixed rate and the ability to convert into a Fixed Rate mortgage with notice, the Variable Rate mortgage may be an option for those of you seeking to capitalize on some of the lowest interest rates we’ve ever had.
Jason Lang’s rebuttal that the Fixed Rate mortgage provides consumers with the “peace-of-mind” that their rate is locked in, coupled with the ability to increase your purchasing power with a Fixed Rate mortgage pre-approval, the options seem similar.
Ultimately, the choice of a Variable or Fixed Rate mortgage is based on your preference and comfort level surrounding fluctuating rates. Jason and Joanna Lang are quick to highlight that there are a myriad of other factors that should be considered when choosing a mortgage and other factors, such as pre-payment options and mortgage discharge penalties, should be considered before making your final decision.