I get asked about where rates are going and I usually respond with, "if I knew that, I'd be retired on a beach somewhere". The reality is no one really knows where rates are going. But one thing is for sure, when rates are near zero there is no place for them to go but up. Here is a link showing the history of the prime rate from 1947 to present. The all time high was 21.50%!! Holy Prime Rate Batman! Can you imagine what it was like to qualify for a mortgage then! http://www.wsjprimerate.us/wall_street_journal_prime_rate_history.htm
Let's look at what a mortgage payment would be at 21.5% assuming a $300,000 loan amount....Yeah..that's going to be $5,384.01 per month for 30 years....and of yeah that doesn't include taxes, insurance, HOA, mortgage insurance.
Luckily we are no where near that today that same scenario at today's 4.875% give us a payment of $1,587.62, much more manageable I think you'd agree.
But what if rates started to skyrocket? Rates historically can rise as much as 4% in a year, or more.
Are you still holding on to that adjustable? Don't get caught holding the bag - convert EVERYTHING you have financed to long term fixed debt before it's too late.