Quote:
Originally Posted by GGG
The question isn’t whether you will save money by locking in.
It’s can you afford the worst case outcome of interest you can imagine then stay variable as variable over time is cheaper and very few can predict markets effectively.
I locked in at the start of the pandemic because if I lost a job I wanted fixed costs
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This is usually the case, but not necessarily the case. Variable has been cheaper for much of the last 40 years because we have been in a declining, and relatively predictable and stable, interest rate environment for the entire time. However, if we are entering a period where interest will oscillate up and down, and be volatile and difficult to predict, variable could be more expense for much of the period.
As Izzle said, this is a personal matter, factoring in one's personal risk tolerance. I don't think it's good advice at all to say that variable will be lower over time.