Recently with the prime rate being so low, my husband and I decided to change our mortgage from a fixed rate to a variable rate. We still had about 3.5 years remaining on our existing mortgage so we were subject to some hefty penalties. I wouldn’t necessarily recommend doing what we did, although we do hope to recover our penalties and at least save some money in the process. However, if you are planning on buying a home in the near future, you may want to consider choosing a variable rate while the rates are low and then you can always fix the rate later when the prime rate goes up. Whatever you decide, don’t rule out the possibility of a variable rate. Statistics indicate that more than 85% of people who have variable rate mortgages save money. When you visit your mortgage lender, be sure to ask about their variable rate mortgage options. It is better to be fully informed of your options in the beginning rather than wish you had later.