Variable Open vs Variable Closed rate

Gemini

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I have to chose between variable open vs variable closed rates for investment rental property. I am wondering which one normally benefit the investor for future investment property purchases as lenders see one rate is same with same monthly payment while other one fluctuates with the prime and changes the monthly payment amounts which could effect the debt coverage ratios?
 

Thomas Beyer

Senior Forum Member
REIN Member
What’s the intended holding period ?

Thomas Beyer, Asset Manager & Improver, Hard Asset Investor & DeFi Asset Hodler, Author, Father, Mentor, Hiker, Kayaker www.prestprop.com
 
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Thomas Beyer

Senior Forum Member
REIN Member
Variable will go up at least 75 bps maybe more .. what’s the rate offered ? p-x? How big is x?

Fixed rates high 4% rate these days, likely topped out.

Run the math. Variable usually cheaper, on avg.

I’d go with a fixed payment even if rate is variable.

I’d take a 3 year fixed though then re-evaluate in 3 years.

Thomas Beyer, Asset Manager & Improver, Hard Asset Investor & DeFi Asset Hodler, Author, Father, Mentor, Hiker, Kayaker www.prestprop.com
 
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