Front-loading Mortgage Risk Today Could Save You Money Later
Sometimes it's beneficial to do the hard thing today so you may ride the 'easy train' later. In today's increasing rate environment, this means you will accept a variable rate mortgage, along with the higher monthly payments. In exchange for this short term pain, you can enjoy the 'ride down' when rates start to decrease again, along with you mortgage payment.
Ultimately, you are front-loading your mortgage risk because you believe that pending economic recession will put downward pressure on interest rates.
Over the long run, you won't find yourself locked into a rate you accepted at the peak.