I will start by saying this is not financial advice, but it is my opinion as a broker.VictoryBoyxx wrote: ↑ have a mortgage closing coming in.
took variable interest for 5 years.
With mortgage interest raising, is it wise to change to fixed now?
later I may end up with huge fixed rate? pls guide
A variable mortgage rate is not for the faint of heart. It involves volatility, and you should be comfortable with the potential for that volatility before entering into a variable-rate mortgage contract. In my opinion, it is not a good idea to lock the variable to a fixed rate as attempting to time the market is impossible. As much as economists, and the news media attempt to sway popular belief no one has any idea how the next few years will play out.
That being said, if you're already getting uncomfortable about having a variable rate mortgage then you might want to consider switching to fixed just to save yourself peace of mind and there is no issue with that. Just look at the spread between what is being offered, and then think about how many rate increases it would take to get there.
In the most aggressive predictions, they see 8 rate increases over by the end of 23'. My opinion on that is it's not possible for them to go that fast, but again just an opinion. That would put your current variable rate up 2% from today. Calculate your mortgage payment as if the rate is 2% higher and see if that's something you will still be able to tolerate. Mortgage Calculator
Also remember that mortgages are only 5 year terms in most cases, so at the end of the day you're always going to be at the whim of interest rate changes. So in 2026 on a fixed rate you will also be reset to the market rates at the time.
Hope that helps a bit!
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