Why would you break your mortgage early? Well, you might sell your home. You may be going through a marital separation. There are many different reasons why somebody might break their mortgage, and in each case, you are going to pay a penalty to a lender. And it's important that you understand how they're calculated.

Today we're going to talk about the difference between a fixed and a variable rate mortgage! A fixed rate mortgage is a mortgage product that has a fixed interest rate and payment, which will not change for the life of your loan. A variable rate mortgage, on the other hand, is a mortgage product that has a variable interest rate, which means that if a lender makes changes to their prime lending rate, your interest rate will change as well, either up or down. What are the other differences?