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Showing posts from November, 2020

Choose a Fixed-Rate Or Variable-Rate Mortgage?

  Choose A Fixed Or Variable Rate Mortgage? What a boring question! But hear me out. The answer can make a big difference to your financial position and life situation if you are a mortgage-having, home-owning sort of person.   Variable-rate mortgages and fixed-rate mortgages look, more or less, the same on the surface. You will make mortgage payments every month, or another time period that you choose. You probably do not spend much ruminating over your mortgage contract (At least, I hope not!). It is not hard to forget which type of mortgage you have.  The great thing about fixed-rate mortgages is that you always know what your interest rate and your payment will be for the term of the mortgage. As you pay down your mortgage, a portion of your payment goes toward the principal (the amount that you borrowed) and the rest goes to the interest paid to your financial institution for the privilege of using their money to purchase a property.  Many mortgage experts think that variable-ra