According to finance-glossary.com, a variable-rate mortgage is: “A mortgage where the interest rate is not fixed and which is dependent on influences such as long or short-term interest rates, for example treasury securities in the US or the base/repo rate in the UK.” What if I’m u...
And that means more for you to repay if you’re on a variable rate (more about variable rates later). That’s where a fixed rate mortgage is useful. With a five-year fixed rate mortgage, for example, interest is fixed for five years. So, you can be sure that you won’t be ...
When considering a reverse mortgage product, you’ll have to choose between an open or closed mortgage agreement and decide whether whether you’d prefer a variable or fixed mortgage rate. Reverse mortgage types also differ in how they allow you to receive your money. Some products let you ...
Learn about the different types of fixed-rate mortgages from CIBC. Choose a fixed-rate closed mortgage for consistent monthly payments, a fixed-rate open mortgage for greater flexibility and learn how they’re both impacted by Canada Mortgage Bonds. Appl
Example: Martin has a variable-rate mortgage. If he wants to pay off the entire principal, the prepayment charge is equal to 3 months' interest on the entire amount he's prepaying, calculated at the CIBC prime rate in effect on the date the mortgage payout statement is prepared. Martin ...
Equity release mortgage - whilst often referred to as a mortgage, this product is not intended for the purchase of property and is only open to older applicants (55 or 65+ depending on type). They can be used to raise money for any purpose which is secured against your residential home....
How long should I fix my mortgage for? What interest rate might I pay on a fixed rate mortgage? What happens when my fixed rate mortgage ends? Can I come out of a fixed-rate mortgage early? Is a fixed or variable mortgage better?
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A variable-ratemortgageis a home loan with no fixed interest rate. Instead, interest payments are adjusted at a level above a specific benchmark or reference rate, such as the Prime Rate + 2 points. Lenders can offer borrowers variable rate interest over the life of a mortgage loan. They ...
The interest rate associated with a subprime mortgage depends on four factors: credit score, the size of the down payment, the number of late payment delinquencies on a borrower’s credit report, and the types of delinquencies found on the report. Amortgage calculatoris a good resource for det...