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Variable mortgage is used for things that involve mortgage such as a house. Every time the prime rate changes, so does the mortgage, therefore the mortgage is variable.
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∙ 12y ago
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What is the difference between a fixed second mortgage and one with a variable rate?
The difference between a fixed second mortgage and one with a variable rate is that fixed second mortgage has a fixed rate and is commonly thought of as safer than a mortgage with a variable rate.
How can one sort through variable rate mortgages?
Variable rate mortgages are mortgages that are not fixed. A person would have to decide which mortgage they would like to try for, either a fixed mortgage rate or a variable rate mortgage.
What is the difference between fix and variable mortgages?
The difference between fixed and variable mortgages are that in a fixed mortgage, the rate can not change. In a variable mortgage, the rate changes with time.
Which bank in Canada offers variable mortgage rates?
RBC Royal Bank of Canada is the best Canadian bank that offers variable mortgage rates. Its variable mortgage rates include a RBC Prime rate which is a 5 year plan that gives +1.000 percent rate.
Where can one find an explanation of a variable mortgage?
You can find a good and detailed explanation right here as your question is being answered. A variable rate mortgage is just what it says a variable rate that means the rate can change over times. This is in contrast to the more traditional fixed rate mortgage.
How is a self certified remortgage different from a traditional mortgage?
A mortgage that is classified and listed as a certified mortgage is different from a traditional mortgage in that one has a fixed rate and the other has a variable rate.
How do you lock in a mortgage rate verbally or written?
If you don't have it in writing, you don't have it! If you have an existing variable rate mortgage, it will specify how you lock in the rate.
Is mortgage payment a variable cost?
Mortgage payment can either be fixed or variable cost. A fixed cost means the interest rate charged on the loan will remain the same for the loan's entire term. A variable cost means the interest rate changes or decreases as time pass.
What is meant by the terminology fixed mortgage rates?
A fixed mortgage rate is an interest rate that will not change for the term of the mortgage. This is in contrast to a variable mortgage rate which changes frequently based on the prime rate or other benchmark rate.
Are fixed or variable interest rates for mortgages better?
For the average person, a fixed mortgage is better because you can budget for the same mortgage payment for the term or length of the mortgage. The only change would be if your insurance or taxes would go up. With variable interest rate, your mortgage could increase every year due to the increased interest rate.
What is a variable mortgage rate?
For those interested in getting a mortgage and wanting information about variable mortgage rates there may be some good explanations that could be helpful on the internet. One article states that a variable mortgage rate would mean that the rate of interest may vary at any time. This would mean the starting repayment rate could differ from that as time went on. The rate is based on the cost of the lender of borrowing results from the credit markets.
How would one get a variable mortgage on a house?
There are several types of mortgages for a house. If you are interested in a variable mortgage, the best way to get one is to talk to a real estate agent who can find you the best options, or to simply speak to someone at a bank.
