Coming off a 2.8% mortgage interest rate - what to do

[commandab]

@chalison You won’t believe how far into this ‘millennial homeowner’ piece it takes for us to mention their inheritance!

 

[resjudicata]

@vgrace Re budget and brace for 6.5% new mortgage rate...

 

[gozonji]

@resjudicata Aren’t they going to 8%?

 

[katieflute]

@gozonji My mortgage dude warned me at least 8%

 

[johnskat]

@katieflute Dude where's my rates

 

[psalm24]

@katieflute Mortgage brokers were also still strongly recommending one year fixes as late as year end 2021, I have plenty of friends who got burnt by that advice.

 

[prettysouthern]

@psalm24 Am I your friend? Because that is what my mortgage broker recommended me. Fortunately 50% was on 2yr, but still. Wut.

 

[jeffriesw]

@psalm24 Mine tried that with me. Thankfully I didn’t listen

 

[flashnkitties]

@vgrace There isn’t a awful lot of point in having anything floating unless you are going to be throwing lump sums at it, selling the property in the near future or are convinced rates could plummet any time soon.

If you fix it, the very general consensus seems to be that rates have either peaked or are about to peak but the reality is that nobody really knows. You just have to take your best guess, choose a term that suits you and remember that you’ll only ever know what the right thing to do is/was with the benefit of hindsight.

 

[ben_simon21438]

@vgrace If I was in this position I reckon I would fix for a year, but who knows honestly? Crazy times.

If you are struggling you could extend the term out to 30 years or go interest only.

 

[resjudicata]

@ben_simon21438 Yip, year by year