Saturday, July 17, 2010
Anja Sonnenberg
Whether you’re purchasing, refinancing or renewing your mortgage, you may have more options than you realize. It’s not just about choosing the best rate, says Eleonora Salerno, mortgage broker of The Mortgage Centre. In today’s market, most people share the same dilemma – should they choose a fixed or variable rate?
A fixed rate product means you’ll get a guaranteed fixed payment for the term you choose. A variable rate product means you’ll have a fluctuating interest rate throughout the term of your mortgage.
“On a fixed rate product you’ll be making the same payment for the next few years. This is the type of mortgage product for a conservative borrower,” says Salerno. “A variable product is more for a risk taker. It fluctuates with the Canada prime rate, so we can’t determine what your mortgage payment will be next year. But history does dictate that a variable rate does float below the fixed rate,” says Salerno. With a variable rate, Salerno says a borrower will see significant savings at the end of their mortgage, so for some, it may be worth a few sleepless nights.
If you’ve signed up for a fixed mortgage, but now you’re thinking about switching to a variable, you can break your mortgage, but you will pay a penalty.
“Another advantage to a variable mortgage is that you can switch to a fixed rate mortgage whenever you want and you won’t pay a penalty,” says Salerno.
Finding the right mortgage may sound overwhelming, but a mortgage broker can help you shop around for the best product. “Our job is to make you feel comfortable when choosing a mortgage,” suggests Salerno.
Call me to discuss your options: Leon Martin 519-503-2753 or visiting my website.
Showing posts with label refinancing. Show all posts
Showing posts with label refinancing. Show all posts
Monday, July 19, 2010
Friday, July 16, 2010
Mortgage rates remain at lowest level in decades
Average rates on 30-year fixed mortgages unchanged at 4.57 pct, lowest level in decades
Thursday July 15, 10:32 am ET
By Alan Zibel, AP Real Estate Writer
WASHINGTON (AP) -- Mortgage rates were unchanged this week at the lowest point in decades, but it hasn't been enough to jump-start the housing market.
Government-sponsored mortgage buyer Freddie Mac said Thursday the average rate for 30-year fixed loans this week was 4.57 percent. That's the same as a week earlier and the lowest since Freddie Mac began tracking rates in 1971.
The last time home loan rates were lower was the 1950s, when most mortgages lasted just 20 or 25 years.
Rates have fallen since the spring. Investors, concerned with the European debt crisis, have poured money into the safety of Treasury bonds. Treasury yields have fallen and so have mortgage rates, which tend to track yields on U.S. debt.
However, low rates have yet to fuel home sales and have sparked only a modest increase in refinancing activity.
The housing market has slowed since federal tax credits for homebuyers expired at the end of April. And the latest decline in mortgage rates is unlikely to boost the market.
Mortgage rates have hovered near record lows for some time, so most people who can afford to buy homes or qualify to refinance their loans have already done so in the past 18 months. Doing so again wouldn't be worth the cost for most.
Meanwhile, millions of Americans are unable to take advantage of the low rates. Many have seen the value of their homes plummet and have little or no equity. Or they lack good credit or steady income to get or refinance a mortgage.
Rates could go lower and still not budge the housing market, analysts say. That's because a person without a job can't afford a home and a person worried about losing their job is unlikely to do so either.
To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
Rates on 15-year fixed-rate mortgages decreased to an average of 4.06 percent, down from 4.07 percent last week. Rates on five-year adjustable-rate mortgages averaged 3.85 percent, up from 3.75 percent a week earlier.
Rates on one-year adjustable-rate mortgages fell to an average of 3.74 percent from 3.75 percent.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for all types of loans in Freddie Mac's survey averaged 0.7 a point.
Thursday July 15, 10:32 am ET
By Alan Zibel, AP Real Estate Writer
WASHINGTON (AP) -- Mortgage rates were unchanged this week at the lowest point in decades, but it hasn't been enough to jump-start the housing market.
Government-sponsored mortgage buyer Freddie Mac said Thursday the average rate for 30-year fixed loans this week was 4.57 percent. That's the same as a week earlier and the lowest since Freddie Mac began tracking rates in 1971.
The last time home loan rates were lower was the 1950s, when most mortgages lasted just 20 or 25 years.
Rates have fallen since the spring. Investors, concerned with the European debt crisis, have poured money into the safety of Treasury bonds. Treasury yields have fallen and so have mortgage rates, which tend to track yields on U.S. debt.
However, low rates have yet to fuel home sales and have sparked only a modest increase in refinancing activity.
The housing market has slowed since federal tax credits for homebuyers expired at the end of April. And the latest decline in mortgage rates is unlikely to boost the market.
Mortgage rates have hovered near record lows for some time, so most people who can afford to buy homes or qualify to refinance their loans have already done so in the past 18 months. Doing so again wouldn't be worth the cost for most.
Meanwhile, millions of Americans are unable to take advantage of the low rates. Many have seen the value of their homes plummet and have little or no equity. Or they lack good credit or steady income to get or refinance a mortgage.
Rates could go lower and still not budge the housing market, analysts say. That's because a person without a job can't afford a home and a person worried about losing their job is unlikely to do so either.
To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
Rates on 15-year fixed-rate mortgages decreased to an average of 4.06 percent, down from 4.07 percent last week. Rates on five-year adjustable-rate mortgages averaged 3.85 percent, up from 3.75 percent a week earlier.
Rates on one-year adjustable-rate mortgages fell to an average of 3.74 percent from 3.75 percent.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for all types of loans in Freddie Mac's survey averaged 0.7 a point.
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