Quote:
Originally Posted by Weitz
I wouldn’t be taking a 5 year fixed right now. I don’t have a crystal ball though.
But no one knows your sons finances. Motivations. Etc. to provide any real advice.
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Fixed is running about 1% less than variable, and variable might raise further, probably by another .25% at some point.
So you're basically factoring in an average 1.25% rate drop. So if rates go up .25% and then remain that way for 2 years, they have to drop a fair bit over the remaining 3 years to make up for that 1.25% difference from the variable rate. They've really set it up so its a very difficult decision.
The problem with picking the variable/fixed rates is that the people setting them know a lot more about and have far more experience with the subject than you or anyone you know.