Products
Fixed Rate
The most common option available. With a fixed rate, you are guaranteed the exact same rate and payment for the entire term of the mortgage. This allows you to budget appropriately and leaves nothing to chance. Although you have to pay a higher rate than a variable or line of credit, you can sleep well and leave uncertainty for the people sitting at the roulette table.
Variable Rate
In todays market this is the best way to save money in the short term. Your payments will be much lower with this option and you will be paying off principle substantially faster. You are dealing with risk though and that is why many people turn away from this option. If prime rate is to go up, so will payments and rate. The main thing to consider is whether or not the change in rates will stop you from being able to afford this type of mortgage.
Line of Credit
Similar to a variable mortgage, lines of credit move with prime rate. The difference with lines of credit is that you only have to pay interest rather than interest and principle. If you do decide to pay principle, the money can be re-advanced to whatever was origionally taken out. You do have to pay a higher premium on the interest rate though. A great option for cash flow.
**There is so much more to know about all of these options. Please contact me for further details.**
