jump to last post 1-2 of 2 discussions (8 posts)

Will you choose variable or fixed home loan?

  1. Damodar Bashyal profile image72
    Damodar Bashyalposted 5 years ago

    Will you choose variable or fixed home loan?

    At this time of financial crisis and interest rate on the decline, would you lock it for 5.75% or go  variable for 5.95%?

  2. LandmarkWealth profile image79
    LandmarkWealthposted 5 years ago

    Rates are a bit lower here in the US, however, generally it makes more sense to lock in the rate if you plan to own the property over the longer term.  If you're confident your turning the property over in the next year or two, then you can make an argument for the variable rate.

    1. Damodar Bashyal profile image72
      Damodar Bashyalposted 5 years agoin reply to this

      My financial advisor suggested me to go with variable at the moment and wait few months and can still changed to fixed rate when it goes more low.

    2. LandmarkWealth profile image79
      LandmarkWealthposted 5 years agoin reply to this

      I would tend to disagree.  There are no guarantees rates will go much lower since rate are a historic levels. Additionally there can be new expenses attached to the issuance of a new loan all over again.  But you have to do what you think is correct.

    3. Damodar Bashyal profile image72
      Damodar Bashyalposted 5 years agoin reply to this

      Thank you for the feedback. I hope our financial advisor is not keeping us in dark.

    4. LandmarkWealth profile image79
      LandmarkWealthposted 5 years agoin reply to this

      Probably just disagrees...But find out if he is compensated for the home loan or mortgage in anyway.

    5. Damodar Bashyal profile image72
      Damodar Bashyalposted 5 years agoin reply to this

      He gets $2800+ one time commission and 0-0.35% based on our loan for the rest of the loan life and that's 30 years. it was written in bank papers.

    6. LandmarkWealth profile image79
      LandmarkWealthposted 5 years agoin reply to this

      Well I hate to say it but that's not likely to generate an unbiased opinion. It sound like he is a mortgage broker and not a Financial Advisor. And it sounds like he just wants to write two loans and get paid twice.  Thats a big cut to get paid.

 
working