Quote:
Originally Posted by Doubl3_H
Haven't been discussed yet, got those numbers from the RFD forum.
Pm me if you want know more
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It's ok, it's just something for you to consider.
But basically, look at your risk level and how much you plan on borrowing.
For example, the difference of $2000 cash back from Fixed and variable.
Over 25 years, that is very little but people see that first and fixate on it so it's really moot.
The difference is over the next 5 years, can you lock in the variable rate to a locked rate if the rates start going up after 2022/2023.
At what interest rate would it become unaffordable for you.
Currently, I don't expect to see interest rates climb until the pandemic is over but there isn't enough inflation that warrants super high interest rates.
Lastly, if you are borrowing a high amount, then the change in interest rates make a bigger difference. If the amount you borrow is low, then even a variable rate jumping to 2.0% isn't going to make you broke.
Hope this makes sense.