6 figures 6 certs brehs, you on a variable or fixed rate mortgage?

[broller]

Wanting input on what y'all think is better

 

[broller]

Up

 

[Uncle Trill]

Are you someone that actively keeps up with rates and wants that flexibility to change?... or are you someone that prefers peace of mind and stability with monthly payments?

 

[Kano]

Close to 6 figures but I just closed on 30 year fixed. 6% interest rate. Mortgage and HOA is less than 38% of take home pay. It’s just my wife and I so we plan to sell/ upgrade when multiple children come in the near future.

 

[broller]

Are you someone that actively keeps up with rates and wants that flexibility to change?... or are you someone that prefers peace of mind and stability with monthly payments?

I think I'd keep up with it but I'm just not sure if things are expected to get worse with respect to interest rates in the next 3 years. That's my internal debate

 

[beenz]

Wanting input on what y'all think is better

absolutely NOT on a variable rate mortgage. go with the fixed and refinance when rates drop.

 

[bourgeoisie tall freak]

There are tools in mortgages that can enable you to not pay the full amortized amount. Pay attention to those regardless of what kind of mortgage it is

 

[TheHonorableOmarSharif]

absolutely NOT on a variable rate mortgage. go with the fixed and refinance when rates drop.

That part... Jerome Powell is not the Unc from snowfall. Variable rates are usually just a lure to help the seller close.

 

[Uncle Trill]

I think I'd keep up with it but I'm just not sure if things are expected to get worse with respect to interest rates in the next 3 years. That's my internal debate

The thing is no one knows so you then have to ask yourself what type of person you are and your risk factor so to speak.

Variable is a higher risk but you have more flexibility to pay down your mortgage without any repayment charges and you can usually switch to a fixed deal at any point pretty easily. But i suppose that'll be after you feel the burn of an increased monthly payment.

If you don't want the hassle then a get a fixed if its affordable. 5 year rates are better but of course you are locked in for a longer period. So maybe get a shorter 2 year fixed deal instead... so that you can assess the situation in 2 years and maybe switch to a better product at that time without any fees.

 

[maxamusa]

variable

 

[Heafcliffe]

Variable in that I went from a 4.5% to 2.5% fixed

 

[Mega]

Fixed.

Variable.

 

[Forsaken]

Variable rate loan would not be wise.

 

[broller]

The thing is no one knows so you then have to ask yourself what type of person you are and your risk factor so to speak.

Variable is a higher risk but you have more flexibility to pay down your mortgage without any repayment charges and you can usually switch to a fixed deal at any point pretty easily. But i suppose that'll be after you feel the burn of an increased monthly payment.

If you don't want the hassle then a get a fixed if its affordable. 5 year rates are better but of course you are locked in for a longer period. So maybe get a shorter 2 year fixed deal instead... so that you can assess the situation in 2 years and maybe switch to a better product at that time without any fees.

Good point..it is about ones philosophy and risk tolerance. Thanks y'all

 

[Jean Jacket]

Fixed. Never do variable rate loans.

Especially long term.