Understand the mechanics of a fixed rate mortgage loan
With the current interest rate environment it is important to have a good handle on your budgeting. A small rise in the interest rate translates into a healthy reduction in disposable income as funds are diverted to paying off the mortgage. If you are in the market for a new home it is important to know and understand the difference between a fixed rate mortgage loan and a floating rate loan. They have different advantages and disadvantages and take on greater significance depending on the economic environment. Knowing the ins and outs can help you better prepare for changes in the economic climate that can affect your situation.
