Variable Rate Information
Every lender has a variable rate mortgage offering their own best features. These are very difficult to compare, even for seasoned professionals. Below are the features you may see.
- Is there a “teaser” period for 3-9 months?
- What is the on going discount below bank prime( ie:prime less .4%)
- How often does the interest rate get adjusted?
- Are the payments set at a fixed amount or can they change as the interest rate changes?
- What is the term of the mortgage?
- What are the open privledges if you pay it off in full?
- What are the prepayment priveledges?
- How is the interest calculated? Semi annually or monthly?
- What discount do you receive if you lock in for a fixed rate mortgage?
- Is there a interest rate cap that guarantees your variable rate can not exceed a set rate?
- If the interest cap is hit and rates go back down, will your rate go down or are you locked in at the rate cap?
- These are the main questions you must know the answers to before you decide which variable rate mortgage to accept. Below are the features of one the best variable rate mortgages I recommend. It is also the mortgage I chose personally.
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