Module 2 · Lesson 4 of 6 · 8 min read
Fixed vs Variable Rate
Pros, cons, and when each makes sense
Fixed Rate: Certainty at a Premium
A fixed rate locks your interest rate for the full term (usually 5 years). Your payments never change. The trade-off: fixed rates are typically 0.5–1.5% higher than the starting variable rate, and breaking a fixed-rate mortgage early is very expensive (Interest Rate Differential penalty).
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