Which mortgage-rate scenario could cost less?

Neither is automatically better. A fixed rate gives predictable payments or interest costs for the term, while a variable rate can benefit when rates fall but exposes the borrower to rate changes; the best choice depends on risk tolerance, budget flexibility and pricing.

A fixed mortgage rate is set for the agreed term. A variable mortgage rate is linked to the lender’s prime rate or another benchmark, so the interest cost can change during the term.

It depends on the mortgage structure. Some variable-rate mortgages have payments that change with rates, while some have fixed payments until a trigger point is reached, so borrowers should understand their specific contract.

It depends on the path of interest rates and the initial rate difference. A comparison calculator can model multiple rate scenarios, but it cannot know future rates with certainty.

Many lenders permit borrowers to convert a variable mortgage to a fixed term under specified conditions. The rate offered, remaining term options and any restrictions depend on the mortgage contract and lender.