Comments on: Should You Choose Variable or Fixed Rate Mortgage ? http://adawnjournal.com/2010/03/18/should-you-choose-variable-or-fixed-rate-mortgage/ A blog on Personal Finance, Investing, Entrepreneurship, and More Wed, 01 Feb 2012 22:37:32 +0000 hourly 1 http://wordpress.org/?v=3.1 By: A.D. http://adawnjournal.com/2010/03/18/should-you-choose-variable-or-fixed-rate-mortgage/comment-page-1/#comment-2247 A.D. Sat, 20 Mar 2010 05:40:21 +0000 http://adawnjournal.com/2010/03/18/should-you-choose-variable-or-fixed-rate-mortgage/#comment-2247 Thanks for notifying. I have checked 3 online calculators and you are correct. I have fixed it now. Thanks for notifying. I have checked 3 online calculators and you are correct. I have fixed it now.

]]> By: Sean http://adawnjournal.com/2010/03/18/should-you-choose-variable-or-fixed-rate-mortgage/comment-page-1/#comment-2243 Sean Fri, 19 Mar 2010 18:02:42 +0000 http://adawnjournal.com/2010/03/18/should-you-choose-variable-or-fixed-rate-mortgage/#comment-2243 Actually, if you'd have calculated a loan amortization right, the variable is far worse. A $500k loan over 20 years would have these payments: At 5%: $3,299.78 At 10%: $4,825.11 At 15%: $6,583.95 $100 or $200 shouldn't be a huge problem unless you seriously overbought, but $1,500-$3,000+, now that would strain most! I can't think of a single reason why anyone would be opting for a variable rate loan in these days of ridiculously low rates. They almost can't get any lower! Actually, if you’d have calculated a loan amortization right, the variable is far worse. A $500k loan over 20 years would have these payments:

At 5%: $3,299.78
At 10%: $4,825.11
At 15%: $6,583.95

$100 or $200 shouldn’t be a huge problem unless you seriously overbought, but $1,500-$3,000+, now that would strain most!

I can’t think of a single reason why anyone would be opting for a variable rate loan in these days of ridiculously low rates. They almost can’t get any lower!

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