Quote:
Originally Posted by InvisibleSoul
So I'm one of those that's on a variable rate at prime minus .75% from a year ago... and I think a little while ago, you said in a thread that it's probably worth it to risk staying on the variable for the remaining four years, since the prime rate for the next year is pretty much guaranteed to stay at 2.25%. Anything changed with that opinion now?
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I said its worth it if you're on variable
minus X%, if you're going to take variable
plus X% then the difference isn't worth it.
Brokers/lenders offering "go variable for 1 year, lock in next year at discount rate" are giving bad advice. You'll save > 1% over the next year, yet rates only have to go up 0.25% to lose 1% over the remaining 4 years... and fixed rates are going up 0.25% on Mon.