Quote:
Originally Posted by pseudoreality
When I went fixed in 2021 my logic was that rates didn't have a lot of room to go down, but could go way up. It seems like a smart move now, but again I also went fixed in 2007 and lost some opportunity there.
|
IMO fixed is generally the sensible choice in the first term or two of a mortgage, as it's the period when you are most leveraged, tend to have other costs (moving, furniture, kids, renos, etc.), and the least general flexibility.
You also won't really realize the 'rewards' from variable for another decade or two...the real reward would be being mortgage free in say 18 years instead of 21. Unless of course you just want variable for a slightly lower payment...which is almost always just dumb.
I'm pretty sure 50 year old me won't mind an extra few years of mortgage payments compared to what might have been possible.
I think this might be the biggest failure here...people don't recognize how/when they'll actually realize their 'winnings' if they come to pass. Whereas the risks could be realized immediately [and painfully]