One of the leading decisions you need to come up with if getting a mortgage is figuring out whether to acquire a fixed rate house loan or a variable rate mortgage loan. As simple as it appears to be, both of these choices can decide the circumstances of your mortgage loan and financial circumstances in the foreseeable future.

Let us say for instance that you just choose security over flexibility. You've productively performed home financing comparison and used both a fixed interest rate mortgage calculator and a variable rate mortgage calculator to find out just how much repayment you will be generating. You decided that you want to learn simply how much you will be spending per month so that you can manage your finances. And thus, you select a fixed rate house loan end experience the benefits listed below:

- Secure repayment amount in the course of the mortgage loan's term. In times when interest levels leap, you still pay the exact same rate. This means there's no need for you to worry about increasing your repayments.

- Because your repayments will not adjust, you can always look forward and easily manage your finances,

One downside though when it comes to fixed rate of interest mortgages is that you can't promptly settle without experiencing several penalties. Your financial institution will demand you to cover the break costs, early repayment costs, adjustment costs, prepayment fee and exit fees. These fees can differ based on the loan provider.

And lastly, there will always be times when the interest levels go down. You made the decision to undertake a mortgage loan check and using a variable rate mortgage calculator, you realize that it is possible to benefit from the declining interest levels and generate some financial savings. With a variable rates of interest loan, these are several of the stuff that you can take advantage of:

- Honeymoon rate for the first year of the mortgage loan (may depend on the loan company)

- Reduced repayments during times when interest rates drop. This allows you to free up some money on your budget, as well as present you with extra money to repay your mortgage's principal.

- Much more flexible repayment modes when you will be able to quickly increase or decrease your repayments dependant on your present circumstance.

- Minimum penalty amount or no punishment at all when you elect to settle your house loan earlier.

You can also select a split loan mortgage calculator and be aware of facts to help you switch to a split rate mortgage. With a split rate mortgage, you can enjoy the main advantages of both a fixed rate mortgage loan and variable rate home loan.