Fixed vs Variable

[Choner]

Hi Everyone,

I would like to hear people's views on fixed vs variable rate mortgages given the recent changes in the mortgage rates. I know the generally accepted strategy is to go variable and pay as if it were fixed to accelerate the principal pay down, however, with the spread between variable and fixed narrowing, would it be wise to lock in for 5 yrs at 3.3 vs variable at 2.5? Rates have nowhere to go but up, it's just a matter of when.

Thoughts?

 

[Thomas Beyer]

3% is a great rate to lock in for 5 years .. however rates will stay low for a while so 2.5% variable is ok too.



What is better: salmon or steak .. BMW or Volvo .. Pasta or Fries ?

 

[housingrental]

Currently I'd go fixed if you have no chance of needing to change financing options during time period of fixed mortgage

If any chance, would go variable

 

[Nir]

[quote user=ThomasBeyer]Pasta or Fries ?


Pasta! ask your doctor



but seriously, roll a dice Choner because it doesn't matter. in 5 years or 50 when you look back and ask yourself how you made a million/s in RE, it will not be "I took only fixed or only variable rate mortgages"