Comments on Triaging My Way To Financial Success: Renewing a Mortgage – Variable Rate or Fixed Rate?...

CC - going from -.6 to +.8 is going to be difficul...

2009-04-20T13:46:00.000-04:00

CC - going from -.6 to +.8 is going to be difficult to take unless there are some big rate changes in the future. Presently, I think I will keep the rate at 1.9% to November, but keep watching the rates and markets to determine if I lock in or go with another variable. I like the idea of a threshold because for me it will take the guess work out of the situation, I just need to crunch the numbers tonight and find my point.

Great point CC, John and I discussed this and mad...

2009-04-20T11:16:00.000-04:00

Great point CC,

John and I discussed this and made the decision that the prime -0.6% is likely something that he won't see for a long time again. Cost certainty for him isn't a huge priority, but he really liked the idea of picking a rate as an upper threshold and locking in if rates move above that.

Thanks for the link Brad. The problem is John woul...

2009-04-20T10:48:00.000-04:00

Thanks for the link Brad. The problem is John would not be able to get a prime - 0.6% mortgage anymore. The best variable rate is prime + 0.8%, which at today's historic low interest rates is only 0.5% or so less than the best 5-year fixed rate available. I agree with the viewpoint that the downside of going fixed is very low at this point.