• Cornelius_Wangenheim@lemmy.world
    20·
    11 months ago

    Also, your mortgage payments don’t go up every year, assuming you’re not a moron and got a fixed rate mortgage. And eventually they stop altogether.

      • m-p{3}@lemmy.ca
        5·
        11 months ago

        I gotta renew and I have access to both fixed (6.08%/5y) and variable (6.80%/5y) rates.

        The thing about variable rate is that it will not change your monthly payments when the interest rate changes, it changes the amortization (ie: how fast or slow) you’ll end up paying your mortgage according to the interest rate.

        It’s a gamble though, personally I’d rather go with fixed at the moment. I did save a bit with the variable rate when I renewed in 2014 and the interest rate ended up going down.

          • UNWILLING_PARTICIPANT@sh.itjust.works
            9·
            11 months ago

            Maybe I’m misinformed but I believe anyone can get a fixed or variable mortgage of whatever term they choose - the part that is negotiable is the rate on that debt.

            So like with good credit or a bigger downpayment you can get a lower rate, but either way you can still probably get a 10% 5y fixed I think almost anywhere.

            (I might be off - haven’t looked at rates in a while)

            PS. Sorry about that other rude person. There’s nothing wrong with not knowing something, as long as you’re willing to learn