You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Mortgage Rates
- Thread starter drlove
- Start date
Go variable and cut that rate to almost half.
I know prime is only 2.25%, but at the same time I'd rather have the security of knowing what my payments are going to be. If the interest rates rise, which they will next year, it may be a completely different story.
One of the big banks offered me a rate of 4.29% locked in for five years. Good or bad?
Horriable...............3.94-3.99 is where you should be
I should clarify, closing isn't until October 2010. The bank has a builder's package in place, and they are guaranteeing 4.29% until then.
I should clarify, closing isn't until October 2010. The bank has a builder's package in place, and they are guaranteeing 4.29% until then.
take it and shop it next year
Go variable and cut that rate to almost half.
Look seriously at paying it weekly or bi-weekly. You pay off a 25 year mortgage in half the time roughly. Also try and negotiate lump sum payments for those times you get some extra cash. It all goes on the principal and will pay off well in the end. Rates won't stay this low for ever and the more principal you kill now the better later.
Not anymore. Every major bank has... or is in the process of putting increases (prime + 1%) through.If you go Line of Credit route...it is revolving and you can get it at prime
Look seriously at paying it weekly or bi-weekly. You pay off a 25 year mortgage in half the time roughly. Also try and negotiate lump sum payments for those times you get some extra cash. It all goes on the principal and will pay off well in the end. Rates won't stay this low for ever and the more principal you kill now the better later.
1-its a great idea to pay weekly, but do it at accelerated payment.
2-have the bank include the option of u putting down a lump some amount every year to max of 10 or 15% ( its an option that u dont have to negotiate as most banks have it but just might not offer it )
3- option of increasing ur weekly or monthly payments if u wish to do so without penalties.
I should clarify, closing isn't until October 2010. The bank has a builder's package in place, and they are guaranteeing 4.29% until then.
So you aren't locking in now, only guaranteeing yourself you won't have to pay higher than 4.29% in a year's time. If rate's rise before then, you are protected, if they stay low, you cut a better deal then. Win/Win situation!
i think he is getting a new home built, and might not qualify for a line of credit that would be enough to but a house.If you go Line of Credit route...it is revolving and you can get it at prime
One of the big banks offered me a rate of 4.29% locked in for five years. Good or bad?
I got 5 years at 3.65% in July with RBC.
Not anymore. Every major bank has... or is in the process of putting increases (prime + 1%) through.
They are dropping now.
RBC has Prime + 0.5% advertised on their website right now.
I've always been a variable kind of guy as yes, the rates are lower.
BUT, the current bank prime is 2.25% This is bottom. It will not go lower, it can only go up. (I beieve the Bank of Canada overnight rate is currently 0.5% - someone correct me on that.)
This is incredibly low by historical standards. In fact, it's the lowest ever.
So in short, I would not be surprised to see interest rates climbe by 3 to 4 percent starting next summer. They will do it slowly, a quarter point here, a half point there, but in the end, the current 2.25% bank rate will be 5 to 6 percent (and that's still pretty farking low)
The 5 year rates right now are just too good to pass up.
BUT, the current bank prime is 2.25% This is bottom. It will not go lower, it can only go up. (I beieve the Bank of Canada overnight rate is currently 0.5% - someone correct me on that.)
This is incredibly low by historical standards. In fact, it's the lowest ever.
So in short, I would not be surprised to see interest rates climbe by 3 to 4 percent starting next summer. They will do it slowly, a quarter point here, a half point there, but in the end, the current 2.25% bank rate will be 5 to 6 percent (and that's still pretty farking low)
The 5 year rates right now are just too good to pass up.
They are dropping now.
RBC has Prime + 0.5% advertised on their website right now.
TD just increased my home equity LOC by 1.0% (it was at prime for over 2 years.
No, switching to biweekly will only decrease your payments by 3 years.Look seriously at paying it weekly or bi-weekly. You pay off a 25 year mortgage in half the time roughly. Also try and negotiate lump sum payments for those times you get some extra cash. It all goes on the principal and will pay off well in the end. Rates won't stay this low for ever and the more principal you kill now the better later.
Check this site out and play with the numbers. See what 200/month will do, quite awesome.
http://www.mortgage-x.com/calculators/extra_payments.asp
