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?
Oh, am I happy! IF?!?! I just got the paperwork for my HSBC Online Savings Account this week. Once I get into the office, I’ll change my direct deposit to that from my credit union account (which is yielding less than half of the HSBC yield). Then I’ll increase the direct deposit too and transfer the funds from the CU into HSBC. I love it!
I’m in the same boat… our only debt is our 30-year fixed mortgage at 5.375%. I like the higher rates, but I don’t want out of control inflation. I think small, managable increases are okay, but we have to remember that higher rates and inflation generally have a negative impact on the poor first. With the economy in its current condition, I don’t think that would be good at all.
I love that interest rates are going up! Our only debt is a fixed rate mortgage (15 year at 4.75%). It would be wonderful if our emergency fund would make a higher interest rate than our mortgage. I feel sorry (and smug, perhaps) for all the people that were clamoring after interest only variable rate mortgages. What on earth were they thinking? I’m expecting to see some really nice houses on the market as those variable rates start to sky rocket.
No interest rates going up is bad all around. Stocks do poorly.
As someone who is 2-3 months away from owning my own home, I say rising interest rates are no good. Hopefully they’ll cycle back down in a couple/few years and I’ll just refinance.
well i’m in a home acquision spree right now. i’m about to close on my 8th home and have several home lined up over the next 6 months.
if rates can stay low for 12 more months, i’ll be happy!!