If you have a variable rate or adjustable rate mortgage you've​ almost certainly​ asked yourself in the last year​ "Is it time to lock in?"​

I mean, is it?

People who have ​variable-rate mortgages and ​adjustable-rate mortgages have seen those rates increase by over 4% in the last year alone bringing borrowing ​costs to an all-time high for their ​households​.​ 

S​o​,​ if you're one of those people who holds a variable rate or adjustable rate mortgage​,​ ​read on. 

Fixed rates are ​lower​. Actually​,​ for the first time in my mortgage career fixed rates are ​now​ actually lower than what is currently being offered on variable rates and again that's causing a lot of people to call and ask ​if it ​is time to lock in. 

​

They do have the ability to lock in their mortgage, and they'll receive a lower rate by doing so but here's the thing​.​ ​Rates are expected to go down over the course of the next 12​,​ 18​,​ or 24 months so if you lock in today you can expect to see lower rate​s​ than you take today being offered ​within the next two years​.

​Now let me make one thing clear​. If​ your family is struggling with cash flow​ then​ ​locking​ in your rate will provide you with a lower payment. If that's the case and you need that lower payment​,​ lock in​. But​ be sure to steer​ clear ​of a​ longer-term ​five-year fixed rate in that scenario​.​ ​You​'re going to want to aim for a one​,​ two​,​ or ​three-year term so that when your mortgage renews you can take advantage of lower rates that are available at that time​.​ ​

If​ you have a variable rate mortgage or an adjustable rate mortgage and you have questions, reach out.