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RE: All the BEANS

in #life3 years ago

Once upon a time, people were getting variable-rate loans for mortgages. I think my parents had one in the '80s. At the time, interest rates were working their way down. It was advantageous then. Now, it's a good thing to lock in a low rate and refinance entirely if rates drop enough to make it worth the paperwork hassle.

But I suspect those who bought in the last few years are looking at being upside-down soon if the housing bubble collapses again. And heaven help anyone who got a balloon mortgage in a house-flipping scheme that fails. Unless that is the case for you, the Good Lady has little to fear.

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We paid over the odds for our house to get one where we wanted but fortunately it was the middle of a boom and there have been some hefty price increases locked in since then and all the while we have been paying it off like a bastard. I think we have two to three years left on our fixed rate. I hope things have calmed somewhat by then!

I had a variable rate back in the day roundabout 2007/8 just after the financial crash as the rates just lept falling and it made perfect sense. Iwould never go for one right now!