Posts Tagged ‘variable rate’

The Basics of Adjustable Rate Mortgages

Saturday, November 10th, 2012

variable_rate_mortgageAn adjustable or variable rate mortgage is a specific kind of home mortgage with a varying interest. When compared with a 30 year fixed mortgage, the borrower’s payment is considerably less. This really is due to the transfer of risk from the lender to the borrower.
The Adjustable Rate Mortgage is rapidly becoming one of the more popular choices for consumers. There is certainly a remarkable spread between the prime rate of interest and a fixed long term mortgage. According to Toronto Mortgage Broker, this spread can be just as much as 3% sufficient reason for the typical mortgage in Canada approaching $130,000, this big difference in rates of interest can be huge. (more…)