01
Fixed rates
The contract interest rate stays the same during the term. Regular principal-and-interest payments are generally stable, making budgeting easier. Early-exit costs can be significant.
02
Variable rates
The interest rate moves with the lender’s reference rate. Depending on the contract, payments may change or the split between principal and interest may change. Ask about trigger provisions and conversion options.
03
Make the choice personal
Consider your cash reserve, tolerance for payment changes, expected time in the home and contract penalties. Forecasts cannot guarantee which choice will cost less.
General information only. Product availability, eligibility and conditions vary by lender and application.