MortgageFixed RatevsVariable Rate

Fixed vs Variable Mortgage Rate — Which Is Safer?

Compare total cost and risk of fixed-rate vs variable-rate mortgage over your loan term.

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Your Numbers

Loan Amount

Fixed Interest Rate

Initial Variable Rate

Expected Annual Rate Change

Loan Term (Years)

Comes out ahead

$682,633

Monthly Payment$1,896

Interest Rate (Constant)6.5%

Total Principal + Interest$682,633

Total Interest Paid$382,633

Rate Risk0%

$808,545

Starting Monthly Payment$1,703

Initial Rate5.5%

Projected Final Rate13%

Total Principal + Interest$808,545

Total Interest Paid$508,545

Under these assumptions

Fixed Rate comes out ahead

+$125,911

total savings

Fixed rate saves $125,911 total over 30 years. Rates rising +0.25% per year erodes variable rate savings over time.

A model of the inputs above, not financial advice. Real outcomes depend on rates, taxes and choices this comparison does not include.