 Good day, fellow investors. On my stock market research platform, I recently received very, very good questions about whether to pick a fixed or adjustable variable rate mortgage. And I really want to give my perspective on that to help. I'm sure there are a lot of you who are thinking about that. My message is, be careful, you are making a 30-year long financial life decision when taking a mortgage, usually of 30 years. And people usually have one month or one coffee perspective that they have with their mortgage advisor when taking such an investment, when making such a decision. So 30-year long, you should really have a long-term perspective on that. And that's what I'm going to give you. We're going to discuss the difference, the risks, the payments, examples. And then you're going to make sure, and then you're going to be able to make a really educated decision on what's better for you. Let's start. So a variable interest rate or adjustable interest rate changes in relation to how the market interest rates change. Your mortgage would probably have an interest rate that is a bit higher than the interest rate set by the central bank. Central bank interest rates are here. On the blue, you see the 40-year mortgage rate, always a little bit higher. The adjustable rate is in between these rates, and they are lower, usually, than the 30-year mortgage rate. What is important from this picture is that the 30-year mortgage rates have also been above 13% over a long period of more than four years in the 1980s. So that is a risk that if you take an adjustable or variable rate, you might see rates at 5, 6, 7, 8, 10, 15% over the next 40 years. It wasn't that long ago that mortgage is what a 7%, and now many think it is impossible. So don't take things for granted as those are now, and I'll show you later how things might change in the costs that you are paying. The fixed interest rate mortgage, if you don't like uncertainty when it comes to your monthly payments, you will take a mortgage with a fixed interest rate. That should not change over the whole course of the mortgage, plus currently, really now, you see the big volatility in those rates, 3.5%, 3.5% now, some really low historical lows, and that's why I'm pushing for a 30-year, 30-year, not 10, not 20, 30-year fixed mortgage rate. The negative side of the fixed mortgage rate is that rates, and thus the cost of your monthly payment is usually higher than with variable rates. A bank has to ensure against changes in interest rates for the next 40 years, and therefore, it requires a higher rate. The red one is the 30-year fixed mortgage rate, and the blue one is the adjustable rate. There is always a 1% to 2% points difference, not currently, but it will probably again adjust to that. Nevertheless, let's take a 1% point difference, and on an 80K mortgage that you need in the United States to buy a 100K home, it's $50. So that's the cost of taking a fixed rate mortgage and sleeping well over 30 years. Now, okay, $50, you can have a lower payment with an adjustable rate or a higher payment with a fixed mortgage rate. The differences that I made, the calculation for the Netherlands, are even lower than this, because interest rates are there from 1.25 variable adjustable to 2.5 30-year mortgage. That's really crazy. And still people are taking the adjustable, even if the difference is 10, 20, 30 euros on a 100,000 mortgage. That's crazy to me. Let me put things into perspective. Let's say you take an 80K loan, you take an adjustable rate of 3.6% on it. The rate remains fixed for 10 years, but then due to inflation, rates spike 10%. On an 80K loan, after 10 years, you paid down only $15,626 of your principal because you have to first pay interest on your loan. The remaining balance is what you have to pay over the next 20 years. If interest rates spike to 10%, you still have 20 years to return $64,000. The monthly payment rate at 10% would be 732 or 47% higher than the current one if you take an adjustable rate. That is the risk for taking adjustable mortgages. You never know what lies ahead or even 10-year fixed mortgages. If interest rates go even higher, then you are really screwed. This is the difference in costs between taking a fixed mortgage that usually has higher costs but also higher tax benefits, probably, depending on the country you live in. Further, central banks are printing money on Tuesday. This whole week, the Fed is just pushing money into the system. Everybody thinks, okay, rates will go lower, better to take an adjustable. Well, at some point, as Ray Dalio said, there will be a paradigm shift. Inflation will come. They will be happy. Everybody wants inflation. And even if you just get year 10, in the Netherlands, it's staggering. Years are even lower. And if interest rates go up, all those variable rates blow up. Mortgage payments, monthly payments go up two, three, four times. That's a huge risk versus the cost of just 10, 20, 30, 50 euros, $50 on a 100,000 mortgage. That's what I want you to think. That's what I'm sure the mortgage advisor doesn't discuss. Doesn't discuss, oh, historically, let's see what would be your payment if interest rates go up, up, up and up. Like it was the case over the last 50 years, nobody can predict interest rates. Nobody can predict inflation. But what you can predict is the fixed, 30-year fixed mortgage. Can you sleep well? Don't be greedy for that extra room so that you don't sleep well. If you don't sleep well, you'll be grumpy, you'll divorce, and then that's a cost. So again, fixed rate interest mortgage. Don't think about your financing. Think about your life. How can it be great in your new house? Think about going, eating out, enjoying flowers, enjoying your time with the family. Not stress about money. That's what is important. But people still don't listen to me. I am the crazy one. Adjusted rate mortgages on average dwarf fixed rate mortgages. So it's typical like in 2007, even now more, those that take bigger mortgages are really taking bigger risks so that they can afford higher home prices. In California, I think adjustable rate mortgages are 18% of the market. So I'm really thankful for this comment on my stock market research platform. I wanted to make a video of this to show a different perspective and how you can buy the house of your dreams, especially now as also fixed interest rates are very, very low. Don't forget to subscribe, click that notification bell so that you see all the videos that I make to get the most value of those videos that fit your financial requirements. Check my stock market research platform. Thank you. Comment down below. I'm always looking forward to your situations to understanding you because these videos are made for you and to see how you can, how I can help you as much as I can. Thank you and I'll see you in the next video.