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| The fact that variable interest rates are lower seems to be getting lost. If taking the variable interest and it does get reset, it could still mean less overall interest paid. It depends on how large the reset when it is reset. Less interest upfront means more principal paid down assuming equal payments. I had a variable land loan that got reset during covid, that was a gift. I also had a fixed loan many years ago and watched interest rates go down each year. I eventually bought my way out of that one when I refinanced to buy another piece of land. I calculated interest rates only had to stay low for X number of years to make the variable rate the best option. And that was long enough ago that interest rates did decline or at least didn't increase. | |
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