Fixed vs variable, over the full term.
Lock in for a few years and revert later, or ride the variable rate the whole way. Both scenarios run through a monthly amortisation so the comparison is honest.
Loan
$
years
Fixed scenario
%
years
%
Variable scenario
%
Fixed wins if rates rise faster than the gap between fixed and variable. Variable wins if rates fall, stay flat, or rise more slowly than the spread you’re paying for certainty.
Variable wins
↓ interest saved over 30 yrs$22,190
Fixed total interest
$796,270
Variable total interest
$774,079
Initial monthly Δ
$-167
3-yr fix vs 30-yr variable
Δ +$22,190
Fixed · 5.74% for 3 yrs
$3,789
Monthly payment during the fixed period. Reverts to $4,043/mo at 6.39% for the remaining 27 yrs.
Variable · 6.14%
$3,956
Monthly payment for the full 30 yrs, assuming the variable rate holds constant.
Loan balance over time
SponsoredSome lenders split fixed and variable across one loan. A broker can find them.
Compare loan structures