If you're a first-time homebuyer and need a quick primer on the types of mortgages available, here's what you should know:

Fixed Rate Mortgage

• "locked in" interest rate - principal and interest payments will always be the same
•  secure, not subject to interest rate fluctuations
• higher rates than variable mortgages, typically

Variable Rate Mortgage 

• subject  to interest rate fluctuations, although payments remain the same
• rising interest rates mean that more is paid towards interest; falling interest rates mean that more is paid towards principal
• amortization period is extended if more interest than principal is paid
• option to "lock into" a fixed rate at any time
• lowest rates are available for variable mortgages, usually

Liisa Arra, broker, has more information on mortgages. Give her a call at 416-487-5131 or email larra@remax.net.  

Liisa sells real estate in the Toronto areas of Davisville, Leaside, and downtown condos as well as North York neighbourhoods of York Mills, Willowdale, and Lansing.