Thursday, March 03, 2005

Variable vs Fixed Rate Loan Calculator

Variable vs Fixed Rate Loan

This calculator will help you to compare a fixed interest rate mortgage with both a standard variable rate and interest-only variable rate (often called line of credit) mortgages.

A variable rate mortgage may provide for lower monthly payments to start with, but chances are those payments will go up in the current Australian financial climate.

Here you can compare an variable rate mortgage with a fixed rate to calculate the real interest expense of both options.

It is worth noting that in order to qualify for a home loan, lenders will use the actual adjusted rate as opposed to the start rate. This is unless the fixed rate period of the loan is at least 3 years in which case the initial fixed rate is used to qualify.

Click here to use the Loan Calculator...