Quote:
Originally Posted by geos
2.75% variable or 2.99% fixed for 5 years? Ummm.... is there a question there? 
The only thing would be if you're planning to pay them off quick, the variable would be better obviously as you're limited to a 10% prepayment per year with the 2.99% deals. Instead of paying them off early (if you elected to go with the fixed), however, you could stash the cash in a bond or other investment until the 5 years is up and use the proceeds to pay off the mortgage then, so you do have some flexibility. It's not the end of the world.
The only way the 2.99% goes lower is if the outlook declines further. Which lets all hope it doesn't. |
Yeah one's our own house and the other is an investment property which I plan to hold long term, so prepayment isn't a big issue.
I like the flexibility of the lines of credit (since we can put money in or pull it out to invest as we desire), but the past 4-5 years with things being tighter I'm finding it easier and easier to come up with reasons to do interest only payments (need the $ to do improvements, or make payments when there's vacancies, etc), so part of me wants to convert to mortgages so that the paydown happens regardless.