|
Posts: 9893
Posted: Fri Jun 12, 2009 9:16 pm
$1: Last week, TD and the other banks increased rates on five-year, fixed-rate mortgages by 20 basis points to 5.45 per cent.
Oouch, I am now very happy I got a 5 year fixed at 3.89%
|
Posted: Fri Jun 12, 2009 9:18 pm
Don't people amortize themselves to 20 year mortgages thus eliminating rate variability?
|
Posts: 7510
Posted: Fri Jun 12, 2009 9:44 pm
Yay, I renewed last week.
@Derby, this isn't the 1950s or '60s.
|
Posted: Fri Jun 12, 2009 9:45 pm
Ripcat Ripcat: Yay, I renewed last week.
@Derby, this isn't the 1950s or '60s. What? My friends bought a house 5 years ago at a set rate per month for 20 years.
|
Regina 
Site Admin
Posts: 32460
Posted: Fri Jun 12, 2009 9:57 pm
You will always pay a higher (than short term) rate when you lock in for a long time. Rates are so low now that it probably wouldn't hurt that much if you lock in for a longer time. They really can't go much lower anyway. I paid my mortgage off in just over 10 years.......but the rates were MUCH higher than they are today.
|
Posts: 15102
Posted: Fri Jun 12, 2009 10:04 pm
DerbyX DerbyX: Don't people amortize themselves to 20 year mortgages thus eliminating rate variability? I didn't even know that was possible. You might be thinking of the period of the mortgage not the period of the interest rate. Usually they lock in an interest rate from 1 to 5 years, but the amortization is for between 20 to 30 years.
|
Posts: 7510
Posted: Sat Jun 13, 2009 5:51 am
DerbyX DerbyX: Ripcat Ripcat: Yay, I renewed last week.
@Derby, this isn't the 1950s or '60s. What? My friends bought a house 5 years ago at a set rate per month for 20 years. I bought my house 5 years ago when rates were at the losest they'd been in years and I just renewed at an even lower rate. I would imagine that your friends will be paying thousands of dollars more in interest than they would have to. They may actually be kicking themselves now as the are probably paying 5% more interest than they would have to and in another 5 years they'd have so much paid down on the principle they could easily drop the mortgage for a home equity line of credit if they wanted.
|
Brenda
CKA Uber
Posts: 50938
Posted: Sat Jun 13, 2009 6:00 am
I bought mine a little over a year ago and have a variable rate. At the moment, I pay 1.75%. (half under prime).
Last edited by Brenda on Sat Jun 13, 2009 6:00 am, edited 1 time in total.
|
Posts: 7580
Posted: Sat Jun 13, 2009 6:00 am
I don't have a mortgage now.. but when I did I always locked in for 5yrs.. after the high rates in the 80s I wouldn't gamble on the variable.. My wife is a manager at a bank and she feels in times like these ..lock in the lowest rate you can get.. and that of course depends on your assets and what other products you have with the bank.
|
Brenda
CKA Uber
Posts: 50938
Posted: Sat Jun 13, 2009 6:03 am
That is what our bank tried to tell us too. Then, the rates were way higher. I know they though: stupid Europeans, always know better... But in this case, yeah we do, I have always had a variable mortgagerate, since I have bought my own houses, which is about 15 years...
|
Posts: 6932
Posted: Sat Jun 13, 2009 6:07 am
Canadaka Canadaka: $1: Last week, TD and the other banks increased rates on five-year, fixed-rate mortgages by 20 basis points to 5.45 per cent. Oouch, I am now very happy I got a 5 year fixed at 3.89% I was happy when I locked in at 12.75 for 5 years on my first house in the 80's.  The last 6 months of that term the interest rate was .25 lower, but other than that, it was the best move I ever made in my life when others ended up paying 24%.
|
Brenda
CKA Uber
Posts: 50938
Posted: Sat Jun 13, 2009 6:10 am
I remember paying 10% on a Fl 119,000 mortgage in 1990... And that was sponsored by my then bf boss, and was a VERY good rate, that he couldn't have gotten at any bank 
|
Posts: 7580
Posted: Sat Jun 13, 2009 6:19 am
Brenda Brenda: That is what our bank tried to tell us too. Then, the rates were way higher. I know they though: stupid Europeans, always know better... But in this case, yeah we do, I have always had a variable mortgagerate, since I have bought my own houses, which is about 15 years... You will always do better with a variable..but the wife says there are so many with very little equity in their homes having put down only 5% or nothing and any change or increase could put them in hot water.. guess you get the lowest rate taking the gamble with variables.. depends on each individuals situation. in the 80s the rates were 18% or more in some cases..
|
Brenda
CKA Uber
Posts: 50938
Posted: Sat Jun 13, 2009 6:24 am
We used to have a mortgage based on stock back in Holland. Variable rates, low rates, and no downpayment required there (we used to amortize the 10% taxes you pay over the buy of a house too) ... When the stockmarket went down, lots of people had a problem like that, and had to sell their houses for way less than amortized for... It still is the most common mortgage there though...
|
|
Page 1 of 1
|
[ 15 posts ] |
Who is online |
Users browsing this forum: No registered users and 19 guests |
|
|