What is the difference between fixed and variable home loan interest rates? Which is better?
If you opt for a fixed interest rate, your payments will remain the same for the specified period of the loan. On the other hand, if you opt for a variable interest rate, your payments will fluctuate according to the market. This can make your payment rise and fall at any time. Many people like a fixed interest rate simply due to the fact that nothing ever changes, making it easier to stick to a monthly budget. On the other hand, a variable rate could save you money if interest rates remain low for a long time.
