Although many of us would like to buy a house with the upfront crash, realistically, it’s not happening for a lot of us. That’s where mortgages come in, providing you with the money to acquire and finance a home over time. Mortgages come in all sizes and shapes. From open vs. closed to fixed rate vs. variable rate, and terms ranging from a few months to years, even over a decade.
While mortgages offer a great financial solution, finding the right mortgage involves more than creditworthiness or raising an adequate down payment. A good credit score guarantees mortgage approval, but what option best suits your needs and situation? On face value, a mortgage with the lowest interest rate is seemingly the best, but various factors impact the total cost. Understanding the difference between fixed and variable rates can help you pick a mortgage matching your risk tolerance and other financial considerations. Let’s look at some aspects to help you make an informed decision on finding the right mortgage.