Home > Tag Archives: shopping for a mortgage

Tag Archives: shopping for a mortgage

Getting the Best Variable Rate Home Loan

Buying a home is likely the biggest purchase one will make in a lifetime. Although there are people who buy homes with cash, most of us  need a mortgage to purchase our primary residence. There are many mortgage options depending on where you live and what you hope to accomplish with home ownership.A big decision to make when selecting a mortgage would be choosing one with payments you can afford for the entire time you plan to own the property. In some circumstances, a variable rate mortgage could be a good option. Variable vs Fixed Rate Mortgages In the US, most mortgages today are of the fixed rate variety, usually with either a 15 or 30 year term, although shorter terms are available. With a fixed rate mortgage, the interest rate is locked in for the entire term of the loan. This makes payments stable throughout the life of the mortgage. While that works well when interest rates are on the rise, if rates decrease, you are still locked in unless you refinance. As seen after the housing bubble crash in the US, refinancing is not always possible. In many countries, like Australia, Spain, or the UK, most mortgages are ...

Read More »