Fixed rate vs variable rate - which should I choose?
A fixed rate means that your mortgage interest rate will remain the same regardless of changes in the economic conditions. A variable rate, on the other hand , can be changed by the lender if the economic conditions have, or will change in the future.
If you think the rates are likely to drop in the future, it makes sense to take out a variable rate. However, if you think that interest rates may increase in the future, it makes sense to have a fixed rate.