In a variable rate mortgage, the rate of interest that you pay may be changed at certain times depending on current rate of interest and the economy of our country. When interest rates go down, many business firms and people will refinance their property loans. When a loan is refinanced, you take out a new mortgage and use that money to pay off the old mortgage. Refinancing may also require you to pay closing costs on the new mortgage. In addition, a prepayment penalty may be charged by the lender of the old mortgage for paying off the mortgage before it is due.
Some people prefer to rent a place to live rather than own their home.
The decision to rent or buy a home depends on many things. For example, the personal satisfaction you get from owning a home, your need for privacy, and the convenience of not having to take care of repairs. You must weigh many factors which have nothing to do with money. Before you decide, you should estimate the differences in expenses. When renting an apartment or house, a lease is usually required.