Well, the articles on interest rates and variable rate mortgages are starting to flow pretty heavily now. I guess that’s to be expected. If you recall some of my previous posts about variable rate mortgages during the lowest interest rate period in 40 years, I was questioning if variable rate mortgages were the right decision for people. A lot of people got them. Not only did they go for variable rate mortgages, many also aren’t paying any principal for the first X number of years.
So, here we are. Rates are rising and the panic is starting. (at least in the media). I’m very grateful that we decided to lock in a fixed rate loan so that we only have to worry about taxes increasing our payment. If you have a variable rate loan, you may want to consider looking in to refinancing to a fixed rate loan soon. The experts are predicting we could see high 6% to 7% mortgage rates within the next year.
So, since the only debt we have is a fixed rate mortgage, I’m actually hoping for much higher rates. I’d love to get a higher return on all of my short term investments. I’m getting 4% at Emigrant, but I’d be happy to get 5-6%.
Are you concerned about the rates going up? Or are you happy about it?