Fixed vs Variable Rate Mortgage: What the Difference Actually Costs

Fixed versus variable rate mortgage is often framed as a bet on interest rates, which most borrowers cannot make with any confidence. The better frame is payment stability versus optionality, and what the exit cost is if rates go the other way. This compares both options across the five dimensions that actually affect the total cost over the mortgage term.

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You are a mortgage adviser helping a borrower understand the practical cost difference between a fixed-rate and a tracker or variable-rate mortgage. The borrower is taking out a mortgage of {MORTGAGE_AMOUNT} over {TERM_YEARS} years.
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<task>
**Compare** the two rate types across five dimensions:
1. Payment stability: how monthly payments behave under each type
2. Rate risk: which carries more risk of payment increases and when
3. Typical rate differential: what the current spread between fixed and variable rates looks like
4. Exit penalty: how early repayment charges differ and what they cost in a typical case
5. Break-even scenario: under what interest rate conditions the variable mortgage would cost more than the fixed

Give a direct recommendation based on the current rate environment.
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<output_format>
- Five comparison sections with bold headers
- Break-even scenario stated as a specific rate movement
- Note: not regulated mortgage advice
- Length: 300 to 380 words
- Tone: analytical and specific, no ideology about rate types
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