Interest Rates Rising! The Terrifying Home Loan: Variable vs. Fixed, A Housewife Does the Math

Interest rates are rising, aren’t they?

What’s more, prices are rising too. Even though I only put the essentials in my basket at the supermarket, I find myself silently freezing at the register when I see the total, thinking, ‘Whoa, that’s more than I expected…’ The weak yen, high prices, and salaries that aren’t really increasing… I’m even hearing scary terms like ‘stagflation’ on the news.

In a world where everyone is struggling a bit.

And here, I’m the one raising my hand—yes, me. Prices are going up, and on top of that, loan interest rates are rising too. I’m taking a double punch.

Is there anyone else in the same boat?

…Right, let’s hold hands and do our best. Haha.

For those of us in this situation, there is a messenger of terror. That sealed postcard notifying us of our interest rate.

I truly hate the moment I have to open that. As I peel it open, my heart races, wondering, ‘What percentage is it this time?’ That feeling is just like waiting for exam results.

And the moment I open it, what’s written there is—

Cruelly, X.XX%!!!

It went up!! I mean… yeah, I knew it. I tell myself that as I quietly close the postcard. Haha.

But even when they say ‘It has become X%,’ honestly,how much does that actually increase my monthly payment? What is the total repayment amount in the end? I don’t really understand. Even looking at just the numbers, it doesn’t feel real.

‘Well, it should be fine even if it goes up a little… right?’

That ‘right?’—that baseless feeling. That is what is quietly, slowly, making me anxious.

To begin with, I am not an expert.

To be honest, I am not a financial expert. I am just one person who has a loan with a variable interest rate.

So, every time I see news about interest rates rising, I feel a vague sense of anxiety. But if someone asked me, ‘So, should you refinance to a fixed rate?’, I wouldn’t be able to answer. Even when I open a bank’s website, it’s full of technical jargon, and
in my brain, it’s just ??? Sigh… I don’t get it.
In the end, I just quietly put the postcard back in the drawer…

Spending my days like that, I suddenly realized something.

Isn’t the true nature of this anxiety just ‘not knowing’?

After all, there is nothing I can do about interest rates rising. It is decided by the Bank of Japan, and as a housewife, I cannot control it. But—if I could clearly see in numbers what would actually happen to my home if they did rise, I thought I might be able to deal with this “vague anxiety” a little better.

So, I made something.

I created a tool that lets you see for yourself, in numbers, “What happens to my home loan if interest rates rise?”

https://wagaya-money.github.io/vielabo-loan/

Just enter your loan amount and interest rate. No complicated operations are needed. You can see things like this:

・Variable vs. Fixed: Which is actually cheaper in total? (You can compare using your own interest rate)
・If interest rates keep rising at this pace, how much will my monthly payments increase?
・If I make extra principal payments, how much of an impact will it have?

Personally, what hit home the most was the scenario where “interest rates keep rising steadily.” It shows exactly how much your monthly payments could increase in the worst-case scenario, right there in numbers.

When I saw that and thought, “Oh, I could probably manage to pay this amount,” my shoulders strangely relaxed a little. Conversely, if I thought, “Wow, this is tough,” that in itself becomes a trigger to take action, like “I should look into refinancing to a fixed rate properly.”

The important thing is not to “predict” the future, but to “prepare your mind.” No one knows what future interest rates will be (not even the pros). That is precisely why you should try various patterns and get a sense of “no matter what happens, I’ll be okay” in advance.

Just by doing that, that hateful postcard becomes a little less scary.

Someday, I want to drink delicious tea without worrying about money.

I am tinkering with these kinds of tools at Vie Labo, a small laboratory that visualizes life and money.

What I am truly aiming for is a life with peace of mind, where you don’t feel restless about money.

In my favorite room surrounded by greenery. Brewing warm tea, playing my favorite music, and spending time slowly without worrying about anything. …A life where that time is not disturbed by the anxiety of “Will I be okay with next month’s payment?”

To that end, I hope to gradually change “I don’t know, so I’m a bit anxious” into “I can see it in numbers, so I’m a bit relieved.”

If this small tool can gently support such a future for you—
I would be very happy.
Thank you for reading until the end.

※This tool is an approximate simulation. It does not guarantee actual repayment amounts or interest rates, and factors like the 5-year rule and fees have been simplified. Please consult with a financial institution or a financial planner (FP) for actual decisions regarding borrowing or refinancing.