What is a fixed-rate mortgage? With fixed-rate mortgages, your interest rate stays the same for the length of your term. It doesn’t matter if interest rates go up or down. The interest rate on your mortgage won’t change, and you’ll pay the same amount every month. Fixed-rate mortgages typically have a higher interest rate compared to variable-rate mortgages because they guarantee a consistent rate. What is a variable-rate mortgage? Variable-rate mortgages are appealing because the interest rates are typically lower than those on fixed-rate mortgages. If interest rates fall during your term, your mortgage interest rate will too — and the amount of...
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Though credit scores aren’t always an indicator of financial health, they are used in a variety of ways that could have a major impact on your life. Interest rates (including mortgage rates) are almost always determined by your credit score. Some employers & landlords may require a credit check to see if you have past credit issues. Remember this is your credit report, not your “I’m Fiscally Responsible” report. Lenders want to know how you have historically handled credit in order to determine if you are a good credit risk. Higher risk = higher rates! The Rule of Two: • You should always...