Quote:
Originally Posted by heep223
Who in the hell would get a variable mortgage with rates this low.
Or am I misunderstanding what a variable is?
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I'm not sure if you're misunderstanding or not. Historically speaking, variable outperforms fixed approximately 80% of the time. With a variable rate of prime - 0.75%, your rate would currently be 2.25% (with prime being at 3%). Currently, the best fixed 5 year rate is in the 2.89-2.99% range, so almost 3/4s of a percent higher.
With it looking like prime may change in late 2015 to early 2016, there would be significant savings in the meantime. Even if prime were to go to up to 3.75% for example, you'd still be in the same range as what you would have been had you locked into a fixed rate.
I still see value in a variable rate, but am definitely not against a fixed rate. It depends on each clients' situation.