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Choosing Between a Fixed or Variable Mortgage
Loan
Should you choose a fixed or variable
mortgage loan? It all depends on your tolerance to risk in the
face of interest rate fluctuations.
A variable rate is generally more advantageous
than a five-year rate on a given date. However, the variable rate may
vary in time—as its name indicates—whereas the five-year rate
remains unchanged for the entire five-year term. With the variable rate,
you benefit immediately from rate decreases, but you may be affected when
the rates go up.
Calculate
your payments (principal and interest).
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