What is the difference between a fixed-rate and a variable-rate mortgage?

The difference between a fixed-rate and a variable-rate mortgage in New York is the interest rate. A fixed-rate mortgage has an interest rate that remains the same over the entire life of the loan. This means that the monthly payments you make each month will also remain the same. On the other hand, a variable-rate mortgage has an interest rate that can change over time. This means that your monthly payments can also change up or down, depending on the current market rate. The advantage of a fixed-rate mortgage is that you can budget and plan for a consistent monthly payment. The disadvantage is that if market rates go down, the interest rate on your fixed-rate mortgage will stay the same. With a variable-rate mortgage, the advantage is that you can take advantage of lower market rates and your monthly payments may go down. The disadvantage is that there is more uncertainty and if the market rates go up, so will your monthly payments. When deciding which type of mortgage is best for you, it is important to consider your financial goals, budget, and risk tolerance. In New York, both fixed-rate and variable-rate mortgages are available. Your lender will be able to advise you on the best option based on your individual situation.

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