At River City Financial, we know choosing interest rates isn’t easy. It can be confusing trying to understand how a fixed rate vs. variable rate will benefit you. That’s why we’ve helped countless customers in Edmonton, and surrounding areas in Alberta make this tough decision for their mortgage choice. Our experienced mortgage team can help you navigate the current financial climate to find a great interest rate for your family.
Fixed rate mortgages often appeal to conservative clients looking for stable payments or people on a monthly budget. A great option for individuals looking for a consistent payment, River City Mortgages offers an inclusive list of lenders.
A variable rate mortgage is calculated on an ongoing basis at a lenders’ prime rate, minus or plus a set percentage, allowing a borrower to take advantage of lower rates. Variable terms are great for those willing to risk paying a higher interest rate at one time in exchange for savings down the road. Borrowers with flexibility in their budget, and can handle a potential increase in payment, benefit greatly from a variable mortgage rate.
This is a great article from Investopedia that provides more information on fixed and variable interest rates.
Questions? We’d Love To Hear Them!
The smart choice is to have an honest discussion with a River City Mortgages team member to ensure you have a full understanding of the risks and rewards of each type of mortgage. For more information about fixed and variable interest rates, contact River City Financial today!