Quote:
Originally Posted by EvoFire
Why is 4.25 var not low enough? Considering the downward trajectory of the rates and we don't see fixed rates being much lower, seems like a win if you can get var @ 4.25.
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I'm not sure rates will drop that much more this year - the estimates are anywhere from 25bps to 125bps so that's a 3-4% range for end of year. I like to see a diff of at least 50bps, if not 75bps between variable and fixed before I go with variable. That buffer leaves room for any increases that happen during the 5 years (this did not work out at ALL for me last time though).
If I felt confident that we'd see another 75bps in rate cuts then variable is a winner for me - that's not clear right now though and it even seems like it's on the higher end of where the cuts might land.
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Gone: 2007 Acura TSX, 2008 Mazda 3 GT, 2003 Mazda Miata LS, 2008 Mazda Miata GT PRHT, 2003 Mazda Protege 5
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