Picked variable rate over fixed on a $200k business loan last year

Figured rates would stay low and I could save a few grand up front. Now my payment jumped almost $400 a month and I am kicking myself. Anyone else get burned by betting on the rate staying put?

3 comments

3 Comments

jesse99424d agoMost Upvoted

@parkera22 yeah that "bit me hard" part hits close to home. I'm just telling myself the extra $400 a month is a tuition fee for a class in financial stupidity.

parkera2224d ago

Jumped in with a variable rate on my trucking business loan a couple years back. Thought I was being smart, saving that extra cash each month for fuel costs. Now my payment went up almost $300 and I'm stuck because the refi rates are even worse. It really changed my whole view on risk. I always figured I could handle the swings but this one bit me hard.

masonm7022d ago

That $300 jump is brutal man, but the $400 one jesse994 is talking about is a whole different level of pain. I know a guy who runs a landscaping crew and his variable rate loan jumped almost $500 a month last year. He ended up having to drop one of his trucks just to make the numbers work. It's crazy how fast these payments can spiral when you're already stretched thin on fuel and maintenance costs.