Quote:
Originally Posted by Sliver
I don't get where we're supposed to have sympathy, though. Like, if below 2% wasn't low enough for people to lock in, then fata 'em. That's just gambling. Like, giant risk of rates going up and no real opportunity to go much lower, why would people opt for a variable rate? I don't get the logic.
|
Most new first time homebuyers probably had no concept of a 5% interest rate (even though that was only 15 years ago) let alone 20% like in the early 80's.
It's hard to blame them -- hopefully they got good advice along the way but I certainly didn't when we bought our first property. Over the years, I've come to know that any mortgage rate that starts with a 2.xx is good, anything with a 1.xx you sign for as long as you can and don't look back.
I think the rub is that people who aren't "gamblers" by nature get sucked into the advice that variable is usually better in the long run; even when you go fixed, it's easy to think you're "losing out" if interest rates drop.