Variable-Rate Mortgages: Flexibility with a Side of Savings

A variable-rate mortgage comes with a floating interest rate that moves with the lender’s prime rate. Yes, the rate can go up or down—but variable mortgages often start lower than fixed ones.

Best for:

• Borrowers who can handle some rate fluctuation
• People with wiggle room in their monthly budget
• Times when interest rates are stable or trending down

Why consider it:

• Lower starting rate
• Option to lock into a fixed rate later if you want to
• Over time, you could save thousands in interest (if rates stay low)