Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 2 years ago on . Most recent reply

User Stats

28
Posts
3
Votes
Khurram Mirza
  • Investor
  • Ottawa Ontario, Canada
3
Votes |
28
Posts

Fixed rate vs variable in current environment

Khurram Mirza
  • Investor
  • Ottawa Ontario, Canada
Posted

A lot of newbie investors at the BRRR refinancing stage will have a tough time deciding whether to go with Variable vs Fixed rate mortgages due to Gov continuous rate hikes. Variable gives pre-payment flexibility and examined historically, variable rates have proven to be less expensive over time but history repeats itself until it doesn't. Would be interesting to know the thoughts of the BP community.

Most Popular Reply

User Stats

922
Posts
638
Votes
Justin Fox
  • Software Developer
  • Vidor, TX
638
Votes |
922
Posts
Justin Fox
  • Software Developer
  • Vidor, TX
Replied

I could see using an ARM product as a builder with inventory that couldn't be moved and getting out of 9-12% money, and then subsequently renting while hoping for better terms down the road.

I'm not in that position but I could see doing that to avoid financial pain in the short term.  People coming to the end of their 'dream-home' interim construction loans and faced with the reality that they're going to refinance into a 7+% fixed-rate loan instead of the ~3% they were anticipating, I think, Is going to be the bigger problem that no one is really talking about.  It's not only a question of affordability but if they even qualify at that point for the refi.  This will no doubt result in more ARMs being utilized to save $$.

Loading replies...