4 ms·
Long term fixed rate? Why bother paying early. Interest rates must rise eventually. If even if they don't the future dollars are much cheaper anyway becuase
by AjithAntony 11y ago
Long term fixed rate? Why bother paying early. Interest rates must rise eventually. If even if they don't the future dollars are much cheaper anyway becuase inflation won't stop. In real terms, your interest rate goes down every year, to the point where is can reach 0 or negative. Locking the money in the house means opportunity costs to take advantage higher rates later.
- lmm 11y agoMedium-term I guess. I've got 2 years left on the fix, then it floats. Everyone says rates have to rise eventually. But so far we've gone 7 years of near-zero rates. If there were a dramatic shift I could take a payment holiday and put it all into savings, but I doubt I would. As for inflation, it affects any form of saving equally - nominal 4% interest is better than nominal 3% whatever that is in real terms.