Quote:
Originally Posted by Azure
Is that because people are just naive? Lots of opportunity within a 10 year period to sign a loan at 2% interest rates. Why not go for the max length? Never understood the variable rate thinking.
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Because individuals don't have much hope in predicting long term rates. If I had gone on a 10 year on my first mortgage I'd have paid around 6%, vs the ~4.55% I got for 4 years. But then I'd have missed the declining rates that had me down to ~2.9%. So a lot of money left on the table.