Percentage Variable Mortgage Rate

[jadeboy]

Anyone know what percentage of the current mortage in the last 2-3 years are Variable Mortgage Rate vs the Fixed Rate for the standard 5 years term.

I been taking to a developer (build mostly in 300K range building) and he said most people (80%) are only putting down 5% down and when rate increases to the norm (5-6%) most of these people are will be serious people and the market could be in serious problem. But I think this will depend on how many of them are on variable rates.

[Iqoair]

Originally posted by jadeboy
Anyone know what percentage of the current mortage in the last 2-3 years are Variable Mortgage Rate vs the Fixed Rate for the standard 5 years term.

I been taking to a developer (build mostly in 300K range building) and he said most people (80%) are only putting down 5% down and when rate increases to the norm (5-6%) most of these people are will be serious people and the market could be in serious problem. But I think this will depend on how many of them are on variable rates.

I seriously doubt 5-6% is going to cause a pandemic in the housing market when it gets to that rate.

[jadeboy]

Well,

300K - 5% down payment = 285K Mortgage

285K at 2.00% variable, 25 years (best I could find)

= $1,207 per month

285K at 5.00% variable, 25 years

= $1,666 per month

1,666 - 1,207 = $459 ==> 38% increase monthly rate.

It's fine for people who are on fixed but people who are on variable has a 38% increase...

[Iqoair]

Originally posted by jadeboy
Well,

300K - 5% down payment = 285K Mortgage

285K at 2.00% variable, 25 years (best I could find)

= $1,207 per month

285K at 5.00% variable, 25 years

= $1,666 per month

1,666 - 1,207 = $459 ==> 38% increase monthly rate.

It's fine for people who are on fixed but people who are on variable has a 38% increase...

I switched over to variable about a year and a half ago, and my payments were based on about 3.75% or so. Came from a fixed rate of 4.95%. Since then my rate has fallen down to .75% which is crazy low. I'll enjoy it while it lasts. Probably shaved a few years off my mortgage.