For most mortgage shoppes, the options available for mortgages can be very confusing. Terms for mortgages vary from 6-month terms to 10-year terms between variable and fixed rates. Savings can be made by taking a variable or floating rate mortgage. Typically the shorter the term or guarantee of the rate, the lower the rate will be. The upside to a variable rate is the strong potential for interest rate savings. The downside is the fact that clients must accept the interest rate risk without a guarantee. If you are considering a variable rate mortgage you need to look at your own risk tolerance and your cash flow available to deal with potential increased payment. Considering rates and prime projections, a prediction of where prime may be heading, can also be an important factor in this decision. We have the software available on our system to compare your options – Give us a call and we’ll do the math!