Interest Rate Fluctuations

Interest rate fluctuations can significantly impact your mortgage. If rates increase, your monthly payment may also increase, especially if you have a variable rate mortgage. Conversely, if rates decrease, you could potentially save money on interest over the life of your loan.

A fixed interest rate stays the same throughout the entire term of the loan, making it predictable for budgeting purposes. A variable or adjustable-rate changes based on market conditions. This means your payments could go up or down depending on how interest rates fluctuate.

Yes, many lenders allow borrowers to convert from an adjustable-rate to a fixed-rate mortgage. However, this usually involves refinancing which may incur fees and charges. Its important to weigh these costs against potential savings before making a decision.

One way to guard against rising interest rates is by choosing a fixed-rate instead of a variable rate mortgage. Additionally, some lenders offer capped or collared mortgages where the rate wont go above (or below) certain pre-agreed limits.

Interest rates can change daily due to various factors such as inflation data, economic growth indicators and central bank policies; however significant shifts are generally seen in response to major economic events or changes in monetary policy.