Fixed Rates verse Variable Rates - What To Do
With interest rates at historically low levels it is perhaps the right time to re consider your present finance arrangements. I am sure that many home owners and Investors would love to have a crystal ball to be able to predict where interest rates will be in future months or years. One of the most common concerns with fixing interest rates is when to fix and for how long. Alternatively if you wait to long they may begin to move against you. A good alternative for many people is to play both sides of the fence by fixing part of your home loan and leaving some variable.
Again with fixing either all or part of your loan, you need to consider your personal circumstances and both your short term and long term plans. Should you decide to sell the property during the fixed term of the loan, you may have extensive exit costs should rates have moved downwards. However, should rates rise and you are not in a financial position to make increased payments, then the possibility of fixing your rate may give you some peace of mind.
There is no perfect solution as every property owner has unique situations and needs. At the end of the day you need to be sure that your choice is effective for you.
To assist with this decision, contact us or feel free to give Chris Burtenshaw from H2H Loans a call to discuss what options are available on 07 3880-4603 or M 0411-639-521 for a confidential, obligation and fee free discussion.