New at Qdomus? Read the FAQ

Which is better? Variable or fixed rate mortgage?

In short I will apply for a mortgage loan since I will finally buy a home (finger crossed!). I'm starting my search of information about home prices, mortgage and loans, interest rates and so on. I actually don't know whether choosing a variable or fixed rate mortgage. What's your advise as expert? Thank you in advance.

Mon, 14/10/2013 - 18:14

Comments : 0

Answers

4

AnswerWidget

This is the eternal question of those wishing to buy a home: better a fixed or variable rate mortgage? Well, as you can imagine, with the first one you pay higher rate, but you can be sure of being protected from any future increases in interest rates. With the second one you'll save a lot of money in the short term, but the future might hold surprises for you.  

Wed, 16/10/2013 - 21:29

Have a look at this mortgage loan calculator

Fri, 18/10/2013 - 21:17

It is true what you say. Nevertheless, today the convenience of adjustable rate mortgages is still such as to justify the future risks. If you compare mortgages online to find the best mortgage deals, (better to use a loan calculator) you'll see that there are varying rates which start from about 3%, and fixed-rate loans that can easily exceed the threshold of 5.3-5.5%. Therefore, there is a difference of more than 2 percentage points, which results in a valid discount on the installment charged to the family budget for those who choose variable rates.

Fri, 25/10/2013 - 17:14

Why don't you choose a mixed rate mortgage? I know that lately an increasing number of people is preferring mixed rate to variable or fixed rate. The advantages of this hybrid solution are obvious: as a matter of fact, it ensures a variable rate for the first few years, and than it gives you the opportunity to switch to a fixed rate after a certain period which depends on the conditions applied by banks. This is excellent if the market scenario suffers a sudden crisis. Anyway, I also suggest to have a look at various loan calculators to know the best mortgage rates.

Fri, 01/11/2013 - 18:28

This is the eternal question of those wishing to buy a home: better a fixed or variable rate mortgage? Well, as you can imagine, with the first one you pay higher rate, but you can be sure of being protected from any future increases in interest rates. With the second one you'll save a lot of money in the short term, but the future might hold surprises for you.  

Wed, 16/10/2013 - 21:29

Have a look at this mortgage loan calculator

Fri, 18/10/2013 - 21:17

It is true what you say. Nevertheless, today the convenience of adjustable rate mortgages is still such as to justify the future risks. If you compare mortgages online to find the best mortgage deals, (better to use a loan calculator) you'll see that there are varying rates which start from about 3%, and fixed-rate loans that can easily exceed the threshold of 5.3-5.5%. Therefore, there is a difference of more than 2 percentage points, which results in a valid discount on the installment charged to the family budget for those who choose variable rates.

Fri, 25/10/2013 - 17:14

Why don't you choose a mixed rate mortgage? I know that lately an increasing number of people is preferring mixed rate to variable or fixed rate. The advantages of this hybrid solution are obvious: as a matter of fact, it ensures a variable rate for the first few years, and than it gives you the opportunity to switch to a fixed rate after a certain period which depends on the conditions applied by banks. This is excellent if the market scenario suffers a sudden crisis. Anyway, I also suggest to have a look at various loan calculators to know the best mortgage rates.

Fri, 01/11/2013 - 18:28
apex apex-2