Should You Lock In or Stay Variable?

One of the biggest questions homeowners face today is whether to stay with a variable rate or lock into a fixed mortgage. The right choice depends on what matters most to you — peace of mind or flexibility.

Fixed Rates: Predictability and Stability

A fixed rate keeps your payment the same for the entire term, which makes budgeting straightforward. It’s a great option if your household expenses already feel tight or if rising rates make you uneasy. Knowing exactly what your payment will be each month can bring a lot of peace of mind.

Variable Rates: Flexibility and Opportunity

A variable rate moves with the market, which means your payment could decrease if rates fall — but increase if they rise. It can be a smart choice if you’re comfortable with some fluctuation and like the flexibility to make changes or pay off your mortgage faster with smaller penalties.

A third option? I love looking at a Hybrid mortgage - this is what I have - I have part fixed and part variable and then a nice juicy HELOC - want to know why? Variable has 3 months penalty, in the last 5 years I have refinanced my home, knocked it down, fully rebuilt it and then sold it and moved across the country. I am always looking for ways to better our life - lifestyle is so important to me - I wanted more space but loved my hood so I built - I loved the west coast so I moved there. My dreams change every 10 years or so - having a massive heloc allows me to make quick choices without needing to consult anyone - having a variable allows me to break at a lower cost IF needed. Having fixed places some of the risk in a less risky position - that is why we go hybrid. There is no best only option. But this one fits us.

Which One’s Right for You?

There’s no universal answer. For example, a family with a tighter monthly budget might choose a fixed rate for the security it offers, while a homeowner with some cushion in their cash flow might stay variable to take advantage of future rate drops.

Your decision should reflect your comfort with risk, your cash flow, and how long you plan to stay in your current mortgage. A quick review can help clarify which option aligns best with your goals. You know how to reach me www.emilycallme.com let's have a discovery call to see what works well for you.

Em