Mortgage rate fixed or variable rate, what to choose?

A mortgage rate fixed reassure you but you have questions on the variable rate credit? Whether you are on the verge of buying real estate or even already engaged in the sales agreement, be aware that the mortgage variable rate capped can provide interesting alternatives. Explanations.

It is well known, the mortgage rate offers fixed terms of repayment without surprises. But he provided the least expensive so far? You should know in fact that given the current housing market, characterized by exceptionally low rates, mortgages are variable rate of interest.

The analysis of real estate brokers, whose role is to find the best rates for your mortgages, are formal. Recent studies dating back to November 2009 show that given the current environment a mortgage contracted at variable rates and consistently win!

Indeed, consider the example of a variable rate of 2.95% 1.10 capped: it may well exceed the maximum rate of 4.05%. Compared with a conventional fixed rate offered to 3.8% excluding insurance, we find that the positive differential current is 0.85%. That is to say, a difference of 6 to 7% of the monthly payment. Conversely, the maximum risk would pay his credit at a rate of 4.05% or 0.25% above the fixed rate (3.8%, representing a differential of about 2% of the monthly.

Concerning security, we must know that if the floating rate loan has long been the subject of abuse of all kinds, the Chatel Act now requires banks to exercise the utmost transparency. Thus, practices are deemed unfair now prohibited to protect buyers. What reassure more cautious!

Finally, one can already imagine that the situation will remain stable for a while. Imagine indeed: how to keep a balanced budget without European refinance the heavy debt of various countries in terms of low interest rates? How to boost the growth of households without debt relief? It seems obvious that the real rate does not rebounding fast enough to dismantle this argument ...