bhernan's Profile
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April 18, 2008
fixed vs. variable
I currently have a second mortgage that has a fixed rate of 8% interest. I will have this paid off in 7 or 8 years. My bank has a special right now that we can switch to. We will have a fixed rate of 1.9% for 5 months. Then it will go to a variable prime rate which is 5.25 at this time, but who knows what it will be later. If we switch and the rate stays below the 8% we are paying now it will be paid off in 4 years. I am usually consrevative in nature, but this might be worth the chance. What do you think the rate will do in the next 4 or 5 years?
Confused