Should I switch from a variable rate to a fixed rate mortgage? - variable rate or fixed rate mortgage
My view of the mortgage will be extended in January 2010. For now I have a variable rate, MTG, that the bank is no longer available. I can still select a different variable rate or can I MTG sets. The bank offers a quick recovery because "the trend is that interest is growing higher and thus the expectation of 6 months, the variable can be higher than what is offered them now (about 4%). I always thought that with time, a variable is the best option. Why is trying to convince me to go fixed?
I have 10 years left on my payments.
Wednesday, December 30, 2009
Variable Rate Or Fixed Rate Mortgage Should I Switch From A Variable Rate To A Fixed Rate Mortgage?
1 comment:
Note this:
Are lowest at this time. Federal Reserve interest rate is always 0%. After the U.S. Federal Reserve has its own rate increase, which infiltrate the mortgage and raise. In the 1970s, when inflation is rampant, the mortgage rates were over 13%.
If you stay with a variable mortgage, you can end up paying about 13% if the mortgage rates go there again. If you lock in a fixed interest rate is now around 4%, no matter what the guys.
Personally, I do not think mortgage rates could go lower. In any case slightly - no more than 0.5%. The possibility that the percentage much higher jump much higher, IMO.
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