How to Decide Between Fixed-Rate and Variable-Rate Mortgages

When buying a home, it's crucial to determine how to finance the purchase, including the down payment and mortgage type. The two main mortgage types are fixed-rate and variable-rate. Fixed-rate mortgages offer stable monthly payments, while variable-rate mortgages can start lower but may increase based on market rates. If planning to stay in the home for a short time, a variable-rate mortgage may save money. However, for long-term stability, fixed-rate mortgages are generally safer. Assess your financial limits and consider consulting a financial advisor for guidance.