The Big Question No One Prepares You For…

You’ve found the perfect home, secured your financing, and then suddenly—your mortgage advisor asks:

“Do you want a fixed or variable mortgage?”

It sounds simple, but this one decision can impact your finances for decades. Get it right, and you could save thousands. Get it wrong, and you might be stuck paying more than you should.

So, how do you choose? Let’s break it down.

What Exactly is a Fixed Mortgage?

A fixed-rate mortgage means your interest rate stays the same throughout your loan term. No matter what happens in the market, your monthly payment will never change.

📌 Why Do Homebuyers Love Fixed Mortgages?

• Predictability – You always know how much to budget.

• Security – No risk of interest rate hikes increasing your payment.

• Long-Term Stability – Ideal for those planning to stay in their home for years.

🚨 The Catch? Fixed rates start higher than variable rates. Even if interest rates drop in the future, you’ll still be paying the original rate.

And What About a Variable Mortgage?

A variable-rate mortgage means your interest rate can change based on the market. Sometimes it goes down, and other times it goes up—meaning your monthly payment fluctuates.

💡 Why Some Buyers Prefer Variable Mortgages:

• Lower Starting Rate – Typically cheaper than fixed rates at the beginning.

• Potential to Save – If rates go down, you pay less.

• Great for Short-Term Plans – If you don’t plan to stay in your home for long, you can take advantage of lower initial rates.

⚠️ The Risk? If rates increase, your payments could become unpredictable and cost you more over time.

So, Which One is Better?

There’s no “one-size-fits-all” answer, but here’s a quick way to decide:

✅ Choose Fixed If:

• You want financial stability and hate surprises.

• You plan to live in your home for a long time.

• You prefer peace of mind, even if it means paying slightly more upfront.

✅ Choose Variable If:

• You’re comfortable with risk and market fluctuations.

• You plan to sell or refinance in a few years.

• You want a lower initial rate and are willing to monitor rate changes.

The Hidden Truth No One Talks About

Many buyers assume that fixed is always safer and variable is always risky—but that’s not entirely true.

🔹 Historically, variable rates have saved homeowners money in the long run because interest rates tend to fluctuate downward.

🔹 However, we live in unpredictable times, and interest rates can rise unexpectedly.

The real secret? It depends on your financial situation, risk tolerance, and long-term plans.

Final Thoughts – What Should You Do?

If you’re someone who sleeps better knowing your mortgage payment won’t change, go for a fixed rate.

But if you’re comfortable playing the market and potentially saving more, a variable rate might be the smarter option.

Still unsure? Orange Mortgage is here to help! Our mortgage experts can guide you based on your unique financial situation and future goals.

📞 Get in touch today and let’s find the best mortgage for you!