Update: I picked a fixed rate over a variable rate on my car loan

My credit union offered me a choice between a 5.9% fixed rate or a 4.9% variable rate that could go up. I went with the fixed rate, even though it cost $12 more each month. I did it because I wanted a payment I could count on for the full five years. Has anyone else made a call like this and been glad they did?

3 comments

3 Comments

jamiegreen2mo agoMost Upvoted

I did the same thing with my mortgage last year. The peace of mind knowing my payment won't jump is worth the extra cost. You made a solid choice for the long run.

williams.sage2mo ago

Peace of mind" is just a fancy way of saying you paid extra to not have to think about it again.

wood.noah12d ago

That "peace of mind is just paying extra to not have to think about it" line hits close to home. But honestly, sometimes not having to worry is worth the extra money. Life throws enough curveballs without wondering if your payment is going to spike next year. I'd rather pay a bit more now than lose sleep over it later. It's a simple trade-off that makes sense for a lot of people.