You then pay the same monthly payments for the life of the mortgage. The advantage of a fixed rate house loan is you can simply budget for the payments. Again, you borrow a certain quantity over a specified period, however in this situation the rate isn't fixed, but is alterable ( or ‘floating ‘ as you'll also hear it called ). The upside to variable rate Home Loans is that the rate of interest at the beginning of the loan period can be lower than the fixed rate would be. Here’s some more information on Home Loan. They're usually faster to order as the bank has some security to counterbalance against the loan should you welch on the payments. As the loan is secured against your house, the IR should be less expensive than an unsecured loan and you might possibly be able to borrow more. One of the major advantages of a secured loan is that the rate charged by the bank has a tendency to be seriously below that of an unsecured loan.
The upside to variable-rate home loans is that the rate of interest at the beginning of the loan period can be lower than the fixed rate would be.