QUOTE (smack123 @ Sep 30 2008, 11:15 AM) I am hearing that interest rates may climb due in part to recent instability (understatement of the year) in the US.
I have a variable, and agree that if you look at it historically, variable is the way to go. However, you must look at the specifics of each cursumstance... 3 years ago, on a different mortgage, I was able to lock in for 5 years at 4.4% That was a no-brainer as far as I`m concerned.
Locking in now at 5.6-5.7.... hmm, that`s a tough one. I had the option to lock in at 5.35 most recently and still went with the variable. Again, it`s all about whether or not you can sleep at night.
Yes, rgt now variable is low and historically, the best route to go vs a fixed mortgage. What I find interesting is that in the next 5 yrs the general opinion amongst economists is that inflation, along with high interests rates is the next big thing. So do you lock in on a 10 year mortgage for 5.5 %-which will look really , really cheap when rates go up??? With the price of commodities and the devalued US dollar going forward, rates will probably go way up.
The general idea if you research it is that a 10 year you will lose out vs a variable. But when rates go way up which is NOT normal historically-then a long term fixed loan will save your bacon.
