Quote:
Originally Posted by hulkrogan
Really all anyone, including the bond market, has to go on is the past.
I'm not going to argue at all that right now might be one of the times to go fixed. As you say, the spread is really tight between fixed and variable, and interest rates dropping seems like a slim to none possibility at the moment. The downside of getting it wrong right now is quite small, as you say -.6%. The possible upside is a lot more than that. If I was up for renewal right now I'd very seriously consider a 2.99.
I still think 3.9 for 5 years is ######ed...
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Well like I said before, it all depends on the math, which is individual to each situation. For some it makes sense to break and pay the penalty, for others the extension for an additional 2 years might make sense.
I agree 3.9% is ######ed, but we aren't talking about simply just taking a 3.9% rate. We're talking about potentially breaking an existing agreement, which will go on for 3 years.