How to calculate your mortgage payments: Fixed vs. variable rates

Understanding mortgage payments is key for borrowers. Fixed-rate mortgages provide stability with unchanging interest rates, ensuring predictable payments. Conversely, variable-rate mortgages have fluctuating interest rates linked to market changes, offering lower initial rates but higher risks. The calculation of fixed-rate mortgage payments uses a formula involving the loan amount, monthly interest rate, and loan term. Other factors like mortgage term, extra payments, and property expenses also affect payments. This knowledge can aid in making informed decisions for secure homeownership.