Is now the right time to lock in a variable mortgage?

With rates for five year fixed mortgage rates down, could this be a good time to lock in your variable mortgage rate?

The Globe’s Nancy Wood answers a reader’s question, and the answer isn’t as simple as it seems.

From the Globe: It is true that variable-rate mortgages can have lower overall interest costs in the long run than fixed-term mortgages. What you need to assess is how are you able to financially cope if your mortgage payment increases substantially?

I would have you plan with the assumption of having a fixed-rate mortgage and see if it is financially manageable. If so, then get the variable mortgage and make the fixed rate payments. Don’t just budget with the current rates of your mortgage payment. If you are worried about interest rates rising drastically, and you are looking for piece of mind, then the fixed rate may be the way to go.

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