Sunday, August 21, 2016

Fixed or floating mortgage rates


I choose a floating rate home loan pegged to the 1 month SIBOR (+ 1%) because I believe that I have the resources to pay down my home loan rapidly if interest rates should spike.
 For example, when interest rate on my home loan spiked to 5.1% many years ago, I chose to pay down the loan for my previous home.
 5.1%? Yes, I know this might look unbelievable to younger readers but ask the older folks and they should remember and, for some, it might have even been higher.