The options for mortgages available can be very confusing for most mortgage shoppers. Terms for mortgages differ between variable and fixed rate, and the length of the Term of the mortgage. Taking a variable or floating rate mortgage can have savings. Typically the shorter the term, the lower the rate will be. This does not always happen because mortgage rates depend on the market plance and the economy. The up side of variable rate is the strong potential for interest rate savings. The down side is the fact that you are accepting the interest rate risk without a guarantee. If you are considering a variable rate mortgage you need to look at your own risk tolerance, and your cash flow available to deal with potential increased payment. You must consider projections of rates and where we see interest rates heading making this a very important decision. Make sure you talk to a mortgage expert when you are making this decision.