Mortgage Rates

Fixed Rate or Variable?

Choosing the right mortgage can be a tough decision. Depending on your comfort level with interest rates fluctuating you may want to consider a variable rate mortgage. Historically, variable rates have had lower interest rates than fixed mortgages, but there is a little risk involved. Although your monthly payments remain the same this type of mortgage is most favorable if interest rates remain low and continue to drop. If there is a spike in rates, less of the mortgage payment is applied to the principal balance and more is applied to the interest. Thus the principal balance of your mortgage will take longer if interest rates rise drastically.

Fixed-rate mortgages offer added comfort in knowing that your payments will remain for the entire term of your mortgage. Interest rate and principle payments will be the same as the first day your signed the papers. You know exactly how much principal and interest are being paid down in any given month. This is a great option if you are looking for a mortgage that you don't need to worry about when interest rates change.

Today's Interest Rates ( courtesy of www.pgrunbaum.com )

Variable 5.15%
6 Months 6.10%
1 Year 5.65%
2 Year 5.50%
3 Year 5.40%
4 Year 5.40%
5 Year 5.24%
7 Year 5.63%
10 Year 5.79%

If you would like to see what amount of mortgage you might qualify for visit
www.NelsonLocal.com/clients/index.html and click on the mortgage calculator on the right hand side of the page.