Fixed Vs. Variable - Which Mortgage Rate is Best for You?
In this episode, the host discusses the debate between fixed rate mortgages and variable rate mortgages. He explains the differences between the two and the pros and cons of each. He also discusses the penalties associated with each type of mortgage and the flexibility they offer. The host shares his personal preference for variable rate mortgages and provides historical data on interest rates to support his viewpoint. He concludes by offering advice on choosing the best mortgage option based on individual circumstances.
Takeaways
- (00:00) - Introduction and Overview
- (01:31) - Fixed Rate vs. Variable Rate Mortgages
- (06:15) - Payment Comparison: Fixed vs. Variable Rate
- (08:09) - Flexibility and Prepayment Privileges
- (10:05) - Misconceptions about Variable Rate Mortgages
- (13:15) - Factors to Consider When Choosing a Mortgage
If you're serious about real estate investing, join our free Investors Hub. Click this link to access now.
Takeaways
- Fixed rate mortgages offer the comfort of knowing the interest rate for a specific term, while variable rate mortgages can fluctuate based on the prime rate.
- Fixed rate mortgages have higher penalties compared to variable rate mortgages.
- Variable rate mortgages generally have lower payments and better prepayment privileges.
- The average time a homeowner keeps their mortgage is three and a half years, so it's important to consider future plans and flexibility when selecting a mortgage.
- Historical data shows that variable rate mortgages have been cheaper on average over the past 25 years.
- Individual circumstances and risk tolerance should be considered when deciding between fixed and variable rate mortgages.
If you're looking to access the best financing for Real Estate Investors in Canada & the U.S.A., then I suggest you Book A Free Strategy Call with a specialist on my team.