Yes, but you can always refinance a fixed rate mortgage into a new fixed rate mortgage at a lower rate. You have to do it intentionally, and it’s optional, so you only do it when the rate moves in your favor. Variable rate mortgages change automatically, which means they can move against you.
Sure. When you gamble, sometimes you win. I'd still rather not try though.
Isn't deciding to pay a higher fixed rate also a gamble where sometimes you win and sometimes you lose?
The interest rate was 7.5% and my friends told me I was foolish not to pay 9.0% for a 30-year fixed rate mortgage. They calculated nightmare scenarios if rates doubled or tripled while theirs held constant.
Every year since then, my interest rate reset downward until it hit the lower limit of 2%. Even though my required payment decreased, I kept paying the original payment amount and paid off the loan 10 years early.
My friends paid hundreds of thousands in additional interest over the years for the peace of mind of a fixed rate.
PSA: 2021 to 2031 might be different than 1998 to 2018.