#VerityAnswers – Fixed Vs. Variable mortgage rates. Which is better?
Brandon Ware and Samantha Comito of Outline Financial discuss the benefits of Accelerated Bi-Weekly mortgage payments versus Monthly mortgage payments.
1. What are your long term goals? This will impact which type of mortgage rate is best for you.
2. Fixed rates tend to have higher penalties if you’re discharging/paying off in advance of the maturity date.
3. Historically, variable interest rates have been lower than fixed (when analyzing 50 years worth of data) but over the past few years the fixed rate mortgages have been lower.
4. Depending on your mortgage, you might be able to lock into a fixed rate from a variable rate and save substantial amounts of money.