One year ago, the 5 year fixed mortgage rate was 3.59% and the 5 year variable rate was 2.60%. Easy to choose a mortgage, right ?!
Today the 5 year fixed is 2.79% and the variable is 2.30%....the decision is tougher.
Variable: Carries a lower rate, but riskier as Prime ‘will likely’ change periodically.
Fixed: Same rate for the next 5 years, so you can sleep at night without the worry of a rate hike.
Honestly, both are good choices.
Important...Years ago, if you had chosen variable, your payment actually ‘changed’ with a change in rates. Today, most variable rate mortgages “Do Not” increase or decrease your payment. The ‘change’ in rates simply lengthens or shortens the time