Variable-Rate Mortgage in Paradise
When it comes to finding you a variable-rate mortgage with the best possible conditions, Mortgage Alliance - Shoreline Mortgages, Inc. is the name to remember. We shop some of the most competitive mortgage deals available in Paradise, giving our customers a range of options based on the precise details of their situation. We offer quality customer care, industry expertise, and exceptional money savings.
To schedule a consultation with one of our local mortgage brokers, feel free to give us a call at (709) 699-5727 today.
What Is a Variable-Rate Mortgage?
A variable-rate mortgage is characterized by having a fluctuating mortgage rate: It can go up or down based on changes to the prime lending rate.
Changes to the prime lending rate will therefore affect how much interest you pay on your mortgage. If prime increases, you’ll have to pay more interest. If it decreases, then you’ll be able to enjoy paying a little less.
Although your interest will fluctuate, those fluctuations won’t be reflected on your monthly bill: You’ll still pay the same amount each month, regardless of any changes to the prime lending rate. What will change is your amortization period, or how long it’ll take you to pay off your loan. If your mortgage rate increases, more of your money will go towards paying off the interest, stretching out the borrowing period. If it decreases, more of your money will go toward the remaining balance on your loan, meaning you’ll pay it off sooner.
Why Choose a Variable Mortgage Rate vs. a Fixed Mortgage Rate?
Most Canadians (roughly three-quarters) choose a fixed-rate mortgage. That doesn’t mean you should discount variable-rate mortgages out of hand though. In many cases, a variable rate can save you money while still shielding you from significant fluctuations in the market.
For one, variable-rate mortgages tend to have a lower overall interest rate. This is because, with a variable rate, you’re taking on responsibility for any changes to national interest rates. As such, the loan poses less of a risk for the lender, meaning they can charge less interest.
Of course, not everyone pays less interest with a variable mortgage rate. If interest rates consistently increase, you may end up paying more—hence the risk involved. A variable-rate mortgage may be right for you, if:
- Interest rates are projected to go down
- You want your monthly payments to stay the same
- You can handle the possibility of a longer borrowing period
How Can Mortgage Alliance - Shoreline Mortgages, Inc. Find Me the Best Variable-Rate Mortgage?
Banks will be eager to sign you up for one of their own mortgage products. As a team of independent mortgage brokers, we act as an impartial adviser: a professional who puts your needs first and ensures you get the best deal available. If you’re looking at variable-rate mortgages, we’ll walk you through your options, discuss the advantages each, and help you narrow down the choices until we find the right one for you. With us, you can expect nothing less than the very best.
Saving you time, money, stress, and energy—that’s Mortgage Alliance - Shoreline Mortgages, Inc. for you.
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