Quote:
Originally Posted by Izzle
Obviously this rate hike cycle was a once in a lifetime situation but would folks have had a stop loss so to speak? Ie if variable rates climb to the fixed levels then lock immediately at those fixed rates for the remainder of the term?
So tough to say. Lock in fixed and rates fall then you're kicking yourself.
I also suppose that rates back then were so low that the only place it had to go was up.
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I inquired a few times about locking in my variable rate but the problem is, the fixed rate offered was quite a bit over and above what the adjusted variable rates were with the increases. They would not let you fix it at the current rate.
So, you'd be paying more than accepting your adjusted raised variable rate. Plus, there are all the disadvantages which come with fixing it.
It really only made sense if you did it at the very start when things started increasing and if you thought things would be getting a lot worse. I should of for sure done that knowing what I know now but who knew it would increase 10x over the year.
Unfortunately, the big damage is done already so you may as well ride it out if you have the means to absorb the increase in payment cost.